Small room Speaker suggestions

Used Micro Utopia is difficult to beat at around $2000 !

First let me qualify that I am a dealer on the side for VMPS. I'll let you read the reviews and do the research on their planar hybrid speakers that have received great reviews from professionals and users. I've been recommending them for years and have been a dealer for about a month so I truly do believe what I'm saying. They're a must listen in their prospective price classes. It's bargain city here. The most important thing for anybody is to auditon all speakers that they can. One of the reviewers did replace a pair of about 7k dollar speakers with the 626R's which can be had in your price range. Here's some reviews: http://www.audiocircle.com/circles/viewtopic.php?t=13112
I'm sure the Von Schweikert recommendation is also a good one. There's also a list of owners of VMPS speakers around the country that will let you audition their speakers even if you aren't interested in buying any here: http://www.audiocircle.com/circles/viewtopic.php?t=10789

That said you can get Dunlavy's SCIII or IV for about two grand. They sound great and are also a bargain for the sound. Vandersteen 3a's should also be auditioned. These three recommendations are all great for the money but they all sound different so go listen. Good luck to you on your speaker search.

I second the Micro Utopia suggestion but also suggest you take a serious listen to the Revel M20's. I have heard them in several setups and have been impressed not only by the soundstage and focus, they have dynamics as well. Good luck!

Chris

Check out the Talon Khite. They are front ported, so they can get back close to the wall without suffering like some speakers might.

After checking out your system I would like to share my thoughts as I have a dedicated audio room of similar proportions (11X12) to yours. My experience follows. I tried several stand mounted monitors but was never satisfied with their sound. By audiophile standards Dynaudio Audience 52s and Von Schwiekert VR-1s were probably the best. The monitors I preferred however were Acoustic Energy Aesprit 300s because they produced the best bass.
Eventually I came to the conclusion that a pair of floor stand speakers don't really take anymore room than monitors and if chosen properly wouldn't overpower the room.
I have used five models: Paradigm Studio 60V.2s, Vandersteen 1Cs, Vandersteen 2CE Signatures, Meadolark Audio Kestrel Hot Rods and Meadowlark Audio Shearwater HRs.
Although they are well below your budget, I would suggest the Vandersteen 1Cs. They worked very well in my room. The Shearwaters are what I liked best but I wouldn't recommend them as Meadowlark Audio seems to be defunct.
If you're still with me the point is a pair of floorstanders don't take up any more space than monitors on good stands and can provide full range sound with outstanding imaging. Good luck.