Need help with Speaker selection. Starter System.

I'm looking for a little help with speaker suggestions. I've narrowed the amp down to a Simaudio I-3, and the CD to a Denon 1650AR (used and great price). Cables and I/C's will be inexpensive $200 or so. My listening room is smaller 11'x 8' and I listen to wide variety of music. Mostly Jazz, Pop/Rock etc. Budget for speakers is $2,000. So far I liked the JM Lab Cobalt 826's (Demo's for $1,950) but I think they may be to large for the room. I also liked the B&W DM603's (very detailed) but also to large for the room. HELP! Has anyone listened to the PSB Image 5T?
Very good choice with the Simaudio I-3. I've heard it matched with several different JMlab speakers and it sounded great everytime. If the JMlab Cobalt 826's are too big have you looked at the 816's? Do you definetly want floorstanders or are you will to go with very good bookself speakers? For $2000 you could go with the JMlab Electra 906's, which I would highly recomend. The magazine Absolute Sound just put the 906's on their front cover and had a very good review of them. Well worth the read if you can get a copy of it. I beleive it is on their website.

Good Luck,
If you aren't glued to the idea of floorstanding, the Revel M20 is a serious one to consider. I've had 603 and the Revel in my room, and currently own the M20's. The B&W's are okay, but I couldn't get them to sound that great in my room. There was too much boomy bass, and they couldn't compete with B&W's better stuff. Namely, the CDM 9NT and the N804. Sure they are more expensive, but I just couldn't get used to the sound of the 603 S3.
If you are not married to floorstanding and can stretch your budget $500; you should give the Ref3A MM DeCappo serious consideration. There is a pair for sale on Audiogon that just went on today. I think they are not the latest version; but this is a great speaker
The CDM 9NT is one of the few good speakers B & W has made IMWO (in my worthless opinion) and you could do much worse.
I would suggest going with these speakers and saving some money to improve the front end as it is much more important to the quality of the sound of your system.
You did not mention what you are using for the source, but this is where you want to invest the majority of your budget.
Good speakers are important but not as much as a good source.
Thanks for all you help guys. I'm not married to floorstanding speakers. So, I'm going to my local shop today to listen to the Electra series and see if my I-3 came in yet. I can't wait to find the right speakers and set up my new system. Thanks again for all your help.
Go check out the new Silver series from Monitor Audio. I was somewhat interested in the BW603 until I heard the Silver 8. I thought the 8 killed the 603. The Silver 6 may also be nice for your room size, but then again I would go with the larger 8 for future purposes. Good luck