where else is the cold and draft coming from? I suspect the walls are not adequately insulated nor was there a good wrap type skin applied to the outside framing to minimize/prevent drafts from the walls as well. I think the thermal curtains might help. check with home depot or lowes and see what kind of temporary system they have for applying a film to the inside of your windows to act like a second pain and further reduce drafts and hold in the eat. as for the foam board ...I dont think the location of the reflective side matter too much but would suggest turniing it towards the inside of the room to reflect the heat back into the room. If you dont have carpeting you maybe getting a lot of cold thru the foundation too so you might consider using rugs in the living and sleeping areas to act as more insulation from cold coming off the foundation. hope that helps post back with your solutions and their effectiveness. LJ