We started by painting the dressing room/bedroom, pulling up the old carpet (and replacing it with new hardwood throughout the house). Then we got to work demo'ing the existing closets.
We selected IKEA cupboards which my husband modified to account for the sloped ceilings, while maximizing height. Since we had the luxury of space we were able to use panelled doors vs. bi-folds (which I'm not a big fan of style-wise, plus I find they block the access to part of the closet).
Unfortunately, we didn't realize until after the closets were installed and we were mounting the doors that we should have put a spacer between the wall and the cupboard in order to allow the door to open fully. Fortunately, a quick adjustment to the baseboard trim by hubbie and his mitre box solved the problem.
Next we added IKEAs interior fittings to the closets and replaced the light fixture with a romantic small-scale chandelier from Home Depot (Hampton Bay's Heritage Aged Iron chandelier for $99):
Finally, I added a dressing table that I had inherited, some flea market prints, and voila, it was complete (at least for now).