small room/speakers

Anyone out there with experience with small-room stereo? Need to hang mains/sats on wall above TV. Have room for sub in walk-in closet. Options available locally: B&W M-1 with sub, Paradigm Atom. Room is 8'X8'X10'. Have 40 wpc of NAD to drive the system. Funny and/or helpful input appreciated.

A pair of Ohm micro-walshs (short or tall) might work very nicely.
Usher s520...amazing little speaker and cheap all over the place.

The first time I heard these I literally started to laugh. I couldn't believe how big they sounded. In my mind I was thinking okay where are the speakers that are actually playing hiding.

Good luck,