K, update... project finished! I did a bit of rescaping today. I had a large piece of driftwood in the center of the tank that didn't really offer a lot of hiding spots, so I found a nice looking fake replacement with hidey-holes all over and popped it in. This is the only decor in my tank that isn't natural materials...
Here is the more current before pic.
So now, I decided to simplify the design a bit based off of some of your feedback. Quite simply, I am no longer using the dowel. I just cut the material to fit the back of the tank and hot-glued the velcro strips along the top of the fabric where it would be covered by the rim of the tank, then stuck the other side with the stick on stuff the velcro came pre-glued with. I figured the hot-glue would help the velcro hold on the fabric better.
Here is a close-up of the fabric I chose to use. Sorry if pics are sub-par, I have been using my iphone and it only takes mediocre pics at best.
Once the fabric was cut to fit the tank, I held it up in front of the tank and used white-out to designate the spots I wanted to place the velcro.
Here is the somewhat crappy view of the finished product. Hopefully soon I will get some better pictures.