really small speakers less than 500

A lot of good suggestions flying blind. As far as the immediately preceding, at least he didnt leave a link. (I hesitated to mention my Harbeth HL-P3's which you might be able to talk me out of for something more than your budget if I decide to get larger speakers for that room. They're small, and my favorites in the mini-size).

Problem is if you dont specify new or used, then there are about 100 different choices. A new speaker under $500 list may not satisfy you where a $1200 speaker selling for $500 would.

All of the above are good suggestions, the Krix and the Linn I think are the best (IMO).

A couple of other suggestions: (1) a used or demo pair of Totem Mites, amazing tiny speakers with high end sound, something I wouldnt say about the PSB's and NHT's Ive heard, and (2) if you want new, see if you can audition some of the $300 list 5 inch woofer speakers like KEF Cresta 2's, Monitor Audio Bronze 2's, Tannoy MX2's, and my favorite among these, the Acoustic Energy Aegis One's. I think you'll be surprised by the quality of the sound from these very inexpensive speakers.

Mission made some nice speakers in that price range, especially the 750 (if you can find some). I haven't actually heard these, but the nOrh speakers make me curious (www.nOrh.com). I've read that they're great at higher volumes, but not that good for low volume listening.

It's difficult to get any smaller than the Gallo speakers. They're about the size of a softball.

I can wholeheartedly recommend the mission 780. It was named "What HiFI" magazines's speaker of the year, and actually delivers on that reputation. The imaging is amazing, with great detail, and a wide, deep soundstage. They are small, about the size of Paradigm Atoms, but have a choice of real wood veneers, which look awesome. I am convinced these can compete very favourably with the B&W CDM1, at a much lower price.

I own the JPW 310 ($250 pair) in my second system and they are quite nice.