great tutorial for making curtains out of flat sheets - the fact that they are using scissors makes me think they are making it harder than it has to be. if you let the fabric puddle, or hang the curtains high (which makes your window seem bigger, you shouldn't need to cut the sheet. plus that's just more work!
Make flat sheet curtains of cut colored queen size sheets on either side and a cheap white one in the middle to cover the unfinished window-holes. Use spray painted electrical conduit for the curtain rod. Should cost less than $15.