However you hang it, keep in mind that once the sheer fabric falls in front of the back fabric, the sheer will change color. So, let’s say you have pulled back the thermals, but not the sheers. Where the sheers hang over the stacked back thermals will not be the same color as the rest of the window. It doesn’t sound like a big deal until you see it. It is very obvious.

You need light and bright. Being rented is tough. First change out the drapes with to the floor length. Cream with a horizontal stripe of brown to match or furniture. This will 1. get rid of the horrid things hanging there 2. pull the initial visual to that wall instead of the floor. Tall and high colors ( mango, aqua, yellow) decorations on your mantel with shorter cream and brown items. Then a large square table in the middle, painted distressed cream, with high color items setting on it. DIY project or Ikea. Green is the number one calming color, just don't let it put you to sleep. :)

I would avoid using dark colors in a room with wood paneling as it would make your space gloomy. You also don't need to match the dining room set. I would go with a very light and fresh cream with very light brown stripes. You could also choose something like this (https://s-media-cache-ak0.pinimg.com/236x/57/8f/6a/578f6abfb4e7b991e594b64cf4f2c174.jpg) to add the blue to the mix and have more colors.

How about a curtain track below the window?