That's really small! Maybe headphones? Ok serioulsy, my long 2 cents: if big bass isn't a priority, a nice pair of 2 way mini-monitors with 6.5" drivers should be more than enough. Even a 2 way with 5.25 inch mid/woof will probably give you some good bass in there. Small rooms help boost bass, plus you're never going to be very far away from the speakers. If you're going to use the room for things besides listening -- I would go for something like the little Sonus Faber Concertinos. $1k should be plenty for whatever you choose. Personally, I probably wouldn't even spend the full amount since your room is kind of a limiting factor in soundstaging and all that.
Also, if you can't get your speakers out far into the room for "proper" placement and are going to have the speakers closer to the walls, like only 1 foot, that'll help boost bass too. All the more reason to maybe be happier with a smaller speaker. A good 2 way with a 6.5" would be as big as I would go. There should be alot of good choices out there for you new or used or diy. Don't forget stands or something else of suitable quality.
Also, if you can't get your speakers out far into the room for "proper" placement and are going to have the speakers closer to the walls, like only 1 foot, that'll help boost bass too. All the more reason to maybe be happier with a smaller speaker. A good 2 way with a 6.5" would be as big as I would go. There should be alot of good choices out there for you new or used or diy. Don't forget stands or something else of suitable quality.