Quite a dilemma. Upstairs 1. Plantation Shutters. - You would have to investigate motorisation options for the cathedral portion of the treatment as you would need some way to open and close them. Periodically they would need a dust and/or wipe which is problematic given the height of the upper cathedral portion of the windows. 2. Split Verticals. Custom made verticals for the cathedral portion of the windows above the existing curtains and verticals replacing the curtains below. Once again motorisation would be an option up above, but verticals are not going to provide the same block-out and insulation benefits that plantation shutters would provide you and would present the same challenges (re cleaning), and aesthetically would not be as pleasing imho. 3. If you are able to still purchase the same curtain fabric as is currently in use across the bottom of the windows, then fixed cathedral curtains could be an option. 'Pinch' or 'Pencil' pleated curtains on a fixed track or headboard. This solution affords you the benefits of salvaging your existing investment in curtains. An important consideration is that the fabric be fully washable and/or dry-cleanable. The solution while still requiring some ladder work is much simpler and efficient when it comes to cleaning as removing the cathedral curtains from the tracks is a three step process - take down, wash/clean, put up. 4. A heavy tint of the cathedral portion of the window would seem an easy and would provide some insulating benefits in relation to heat but not so for cold. Depending on where you are this may not be as much of an issue but that is a lot of window surface area that is currently inflating your heating and/or your cooling bills, so an important consideration in whatever solution you turn to is going to be whether there is a positive return of your investment in terms of reduced heating and/or cooling. 5. Option five presents possibilities of a hybrid solution maintaining elements of your existing curtain investment, but adding a 'look' that would not sacrifice the cathedral portion of your windows to being permanently blocked as is the case with option 3. Of course, a lot is going to depend on the place of your doors and from close examination of your photograph it looks like you have two sets of doors either side of would make this solution impractical, if not unworkable. This is a good example of the application of fixed cathedral curtains with the use of tie-backs affording the benefits of aesthetic appeal and without relegating the upper gabled windows to being permanently closed. Downstairs Downstairs, there would appear to be more options. Closer examination, however, indicates that you have two doors either side of centre. The question then becomes what sort of doors are these? If they are simple sliding doors, or are they bi-fold/stack-a-doors? The options for downstairs could include: 1. Roman blinds. - Thermal lined Soft Romans. The issue with Romans is going to be whether or not you have the room above the windows to draw up the blinds so that you down't have to duck to go outside. Romans typically will draw 30cm/1ft from the top of the window. - Having the room above the windows to facilitate a higher mounting position would allow you to treat the entire window with Roman Blinds as an option in keeping with your open plan living and an implied desire to move away from curtains. 2. Curtains, Curtains, Curtains! - I would have to agree with @chookchook2. Curtain window treatments can be very modern and complete your vision of a modern open plan space. Modern fabrics with bold colours and/or patterns used with or without sheers and using either decorative rods or a single pelmet (box cornice) to tie together the curtains and provide added balance in relation to the shape and form that is projected by the window treatment when viewed from within the downstairs area. Overall, you have simply wonderful, though challenging windows. I would have to agree with @jbantick that 'best' and 'economical' do not usually run together well in the same sentence. Depending on your location, the benefits of reduced heating/cooling costs by selecting a window treatment solution that is going to produce a positive ROI over time should be considered before ruling out a more expensive options.

Firstly - thank you everyone for your fantastic ideas. I absolutely loved the light and airy Look especially! I have been visiting various lighting stores today and other online sites and then went back to the house and I am not sure that I have reached any useful conclusion! My latest thought (which may change!) is that I have a lot of beautiful Aboriginal artworks so I am thinking this room might showcase all of that and have a warm light to complement - possibly brass, but maybe even a completely out of the box modern fitting as a juxtaposition to the gorgeous art. Your great ideas have made me more comfortable again with a pendant over the table, but a lot that I saw today was chrome which doesn't thrill me. I hope to change the balustrades in the next couple of years to something more contemporary also. Thanks for keeping the ideas flowing!

The dimensions of your dining room are a bit cosy for a traditional dining table set-up. Had you considered banquette style seating which is built into the corner? Do a search on Houzz for "banquette" - some are quite formal, and others are informal. Dining chairs can be added or subtracted as needed. Here is a link to a Melbourne based manufacturer of banquette style seating: http://www.jaro-upholstery.com.au/banquette-booth-seats Consider wall mounted sconce uplights which reflect light off the ceiling so that you never need to worry about the position of a pendant. Best of luck Dr Retro of Dr Retro House Calls

It is crucial in your design that you get the lighting right with your cathedral ceiling. Unlike a normal roof there probably isn't a roof space between the ceiling and the roof for an electrician to make changes if you get it wrong. You only get one chance to get it right which is when the house is designed, unless you remove the roof to access the electrical down the track. Don't be like these people who wanted to save money on their lighting design for their cathedral ceiling! Some large lighting retailers offer free lighting design services that is linked to the purchase of their products. If you don't want to be tied to a particular retailer then you need to engage an independent design professional who can read your plans, understand the space and who can understand your retirement lifestyle. Even so, when I do a lighting design for a client I end up creating the lighting schedules from one or two lighting suppliers that I have worked with before, that I know and trust, and who will stand by their products for any future warrantee claims. I would hope that the person you have engaged to design your home would offer a similar service? Best of luck with your budget, Dr Retro of Dr Retro House Calls/Dr Retro Virtual Visits