Another suggestion - sheerview blinds. http://www.bosetti.com.au/index.php/interior-products/sheerview-elegance-blind/ Available from all major blind suppliers. These blinds allow you to control the light totally from sheer to block out; block out 99% UV; available in large range of colours; gives the look of shutters with the softness of sheers all in one neat product.

Either white roller block out blind or if English country theme then white long drop sheers. Curtains can be block out backed. I'd go eggshell blue to match blue background wallpaper and white to match flowers so then beautiful coloured flowers on wallpaper can be highlighted esp if you can get a throw pillow or lampshade to match the glorious pinks and gold

My advice would be to get rid of the blind as you won't use it once you have the curtains - perhaps you could use it elsewhere or have it as a spare. You would probably find that without the blind you will use the access more often. I would do full height and full width drapes - an inverted pleat is attractive with heavier fabrics but if you have the light fabric on the top keep it simple. How about putting your sheer lighter drape on the side closest to the bedroom and have the blackout lining behind. This gives softer look in your room. You would probably find that without the blind you will use the access more often. If there is a lot of sun take care with the pure linen cotton and natural fibres as they will rot with light and sun. There are many synthetic linen look alternatives that are less expensive, last longer and have the same look. I feel your room could do with some texture - you could possibly have a subtle self coloured stripe in the drape - or go plain and have the interest in your bedding. If you want to go soft grey drapes I would go for a darker charcocal or midnight blue/ teal colour on your walls which would look awesome with a soft grey linen look curtain and natural bedding. You could introduce soft mustard, peachy pinks and soft apple green linens in your bed cushions.

check "pinch pleat" style hooks...usually available at Spotlight, Bunnings, some department stores or any curtain maker but you can often find a few odd ones at teh Opshops to test which shape suits your curtain...they have the hook part that hangs on the track but also have prongs that project upwards and can be fed through several vertical loops to make a pleat every 10 cms then a smooth gap, rather than continuous gathers, and hold the curtain upright..the different styles have the hook attached a different levels along the prongs so that the hook can be hung higher or lower....the right one may depend on the weight and width of the fabric to suit the curtain space...making the curtain narrower can sometimes help and another option is to add weights to the hem of the curtain.. some special curtain weights look like big flat metal rings about the size of a 20 cent coin and are wrapped in a small pouch of fabric that is sewn at intervals along the inside of the curtain hems...(lots of work so try hanging a few keys on safety pins along the hem to see if that helps before you start sewing) best of luck with this very annoying dilemma