Is it even possible to set up a system in 12x12 room?

I had this same dilemma and settled on a pair of Quad 57's with a small subwoofer. Amazing sound since, when one puts the speakers about 3 feet from the wall, one is in an ideal listening position to listen to these marvelous performers. Like opening a window to a performance. Could always put a small sub in also if desired. Won't work for rock music!!!!!

I too have a 12x12 audiophile room, and vaulted ceiling up to 20 feet with a pair of Vandersteen 2CE Sig II Speakers driven by a pair McIntosh monoblocks 601 watts each and a Mac tube preamp, two large acoustic panels behind each speakers and two behind the back wall,  I tell you, when I’m listening to my music and volume at 50% or higher, it sounds like listening to a live band, it’s so clean and clear like having an audiophile headphone over your ears.

Thanks everyone for there support, I thought I was an odd ball with such a small room, looks like I was totally wrong. Looks like many have had great results with a small room. I am going to set up everything this weekend and see what happens, I'm going to break down some of the racks and use the maple shelves on the floor to keep things low if I can. I have some spikes and old Nordost pulsar and Quasar footers to use on carpet over concrete floors if I can. I also looked at GIK panels not bad prices either just need to figure out how many and where to place them. Soon as I get things up and running I'll report back.

Sounds good Paul!

I was too lazy to break down racks to try to go low for now. I  lined all 3 racks together and have no extreme experimenting  yet with speaker placement. I have only tried floorstander which I put front baffle 3 1/2 feet off wall and rear is 2 feet off wall, with side of speaker 1 1/2 feet off side wall. The crossover is external so that was a little tricky with the bend of speaker wire but it worked. I have no room treatment yet. Couch is up against wall for now. After all I have read over the years how bad a square room and chair up against wall is I was very surprised how good it sounded. Speakers totally disappeared, that was big concern. I wanted to try the most bass dominate recordings I could think of so I put on Herbie Hancock Head hunter and Allison Krauss/Robert Plant Rasing Sand first. The bass is fairly tight but there can definitely some boominess with the bass but it's not bad at all. I did not find it to be overly bright which was a little shocking, I think the copper foil Jupiter and Miflex in Preamp and speakers may have helped. I was very happy with highs very airy and detailed with out being fatiguing in the slightest.  I do have rear firing tweeters, I did notice it was very sensitive when turning the dial vs the previous room. I'm going to call GIK this week and now figure out how to tighten bass and achieve a little more tone. I'm now going to put a little time in with speaker placement, room treatment and getting as much gear lower on the floor and see what happens.