Great speakers for a small room

Give Louis at Omega a call (203)847-2800. He will set you up right. Most of his speakers sound great with a kt88 amp.
Chris

Find a demo/used NHT Xd system (there are a couple on Audiogon right now), should be ~$2k or a bit less, and since it includes a power amp you can sell your current one for an even lower net cost.

The sound is, in a word, staggering. Unbelievably transparent, unmatchably accurate, and you'll have (subject to the room) dead-flat response down to 25Hz. Reviews had the Xd pegged as a contender punching well above its original $6k price. At $2k, well, I think it becomes a compelling purchase (and in fact I was so compelled myself :-) ).

If you want a more conventional system, the Dynaudio Focus 140 is very nice indeed and list for $2k new. Honestly though, to my ears at least, the Xd is so good that even something as nice as the Dynaudio doesn't come even remotely close.

borrowed a new pair of Harbeth P3esr's this afternoon. Have them until Tuesday. Tiny speakers. They only have 30-40 hours on them but what an amazing sound coming out of these little speakers. Tons of detail and bass (but not the booming of bigger speakers); and vocals very smooth. Sealed cabinet may be just what I am looking for.

I listened to the Harbeth 7ES-3's at the dealer the other day. For a smaller room I could live with these speakers. They had a similar texture as my Avalons. They were very musical and they sounded more "analog" than some others with more analytical tweaters such as the Ushers or Focals.

I'm using Linn Majik 109 in my office, which is almost exactly the same size as yours, perhaps 6 inches smaller each way. They are wonderful; supremely tuneful without a hint of excessive brightness. With the front port they are happy being very close to the wall. The double tweeter system and the low crossover to the larger tweeter clearly works superbly - they are especially good with voices and saxophones, but work well across the spectrum. They are most perfect for jazz and acoustic, but can handle large scale orchestral works very well. Rock is their weakest point, but they have better bass output than you might expect (and better than Linn's stats suggest).
I'm running them with an Onix 21s - that's a 50w amp but with plenty of current. My sources are a Naim CD5/flatcap and an LP12 - they do appreciate a good source, so I hope you've got a good DAC.