So far the room is very neutral, so I would want to add some color.

Maybe this valance from country curtains

And a solid navy or beige day bed treatment.

A few throw pillows, a roller shade for privacy and room darkening and you're done.

Nice suggestion, Annie. Would you include the side panels too, or just the valance. I think I like the look of the valance with the panels.

I think a valance plus panels set could be too much and too formal for a small room. You might consider these panels from Target. They are in your price range and look pretty nice (nicer than they appear in this photo):

The blue has a slight gray tone.

Here is a link that might be useful: Target panels

I like gray's suggestion. As for bedding, I love quilts. I would go with a white and another color combo depending on what you like. You can find great deals at Ross, Home Goods, TJMaxx, Marshall's or online at Overstock. I recently purchased a tan queen sized quilt at overstock with shams for 59.00 on sale.

Don't know if privacy is an issue, but I see more and more where people will put a sheer panel under the valance which can be pulled to one side for light or cover the window for more privacy. Sheers are very inexpensive.

GF will be doing that in her DR to soften the look of the valances...other GF did that already in hers.

Thanks again all. I like the idea of sheers. I'm also thinking about keeping the room in all creams/whites - since I don't have an all white room and have always gravitated towards them (when they're done by designers, of course.) I saw a beautiful curtain on one of the old postings here - I believe your posting Annie. So pretty and elegant. It was a full length cream with button at the bottom of each pleat (at top of curtain). Yellow chair in photo. Im not sure how to post picture, but if you know what I'm referring to, what do you think about that for a small room?

Check out IKEA curtains. Just went there yesterday and saw quite a few pretty and fairly inexpensive sheers/semisheers, or kind of white on white.

Here is a link that might be useful: IKEA white curtains

Zen, I know exactly the drapes you are referring to. Ever since I saw them I have yearned for drapes like that. They are custom though and I imagine they would be quite expensive.

It was posted by: Posted by justgotabme zone 5 (My Page) on Tue, Nov 12, 13 at 20:57. They are gorgeous.