At this age you should just ask for favorite colors, and then you pick the complimentary covers. Real privacy demand won't happen until about 11 - 13, so right now just concentrate on making it beautiful. If it is pretty and functional, they will love it! Buy furniture pairs so when you do split them up they each have basics. Advice about dividing the room generally is good, but you don't want big sister declaring any territory! There is a crown detail you can do over a bed that includes curtains down on either side - can provide privacy when you sit up in your own bed - consider this as they get a little older and won't pull it down while hijinxing. If it is beautiful and the textiles are in a color they love (or two colors that work together, like pink and lavender on a spring green or taupe wall &/or turquoise and spring green on a buttercream yellow wall ) - then they will see that they can also be different people who are harmonious together. At 7, she is old enough to pick a great color, but don't ask the 5 year old - her taste is changing daily - just surprise her with something all her own that works with sister's pick. I like the look when people select soft goods that match except for color and find one great print accent pillow that ties colors together for both beds. Stay with neutrals on furniture - you can paint out different stuff so it is tied together with pale gray paint. Think mostly about function - Add shelves and cubbies that hold baskets for stuff - stuff changes but they always have it. If you have room, give them each a desk as they approach 5th grade.

based on the drawing, the wall where the bed is. HOWEVER, you mentioned that this drawing is not a true depiction of the furniture you will use and the wallpaper. if that is the case, i think the wall paper can work on either wall, it all depends on how busy this wallpaper is and how "plain" the bed is. if you go with a busy wallpaper behind the bed, you may want to keep your bed and bedding on the minimal side so that there is a good visual balance to the overall composition. if you go with snazzier bedroom furniture, then a busy wallpaper may be a bit much and you may want to put it on the other wall or use a textural option to serve as the bed's background rather then another focal point.

no problem, so are you saying that wall is closest, but stronger, do you think it might like a smokey teal? that is very in right now, or is it like the grayed out turquoise on the coverlet? Grey would be a wonderful accent with that. Have you thought of making your headboard? So amazingly simple? Give yourself like a nice padded gray? Could go for a silk or velvet? oh do you have dark hairy people? you know like black retrievers or something? that could be a problem. If you put covered buttons, there is actually a little tool (under $10 does it all for you. really glam it up. do these help? I think i would go with light gray or a variation of the wall color. let me know when you are ready for more. Couple ideas for bedside stands, first 2 less than $100, last one idea for alternative.

The first thing I would do is switch your light fixture to track lighting. That way you can focus the light onto that wall much like what is done in an art gallery. I also think that may stop the reflection you are getting. I think putting cabinets on the long wall will really close in the space. I would make your red wall your gallery wall. I'd frame everything in white so they "pop" off the wall. The problem with the other wall being the gallery wall is that it's just to narrow. You can't really stand back far enough to see the art.