Small room amp and speakers recommendation


I have an area in allocated in my new house for a listen room that is approximately 7ft x 12ft x 10 ceilings....i know it's small, hut it's all mine away from the kids. I am look for advice/recommendations on an amp and speakers for that area. I want to keep the budget under $5k (the lower the better). I listen to a lot of vinyl and a majority or my preferred music is acoustic with some rock mixed in on occasion. Please let me know what you think and if you have an other questions on my desired set-up.
Thank you
weiky
You'll get varying recommendations and I throw my 2¢ too. I likewise have a small dedicated room so my recommendation may count some. Harbeth P3esr and ProAc Tablette 10 monitors are at the top of my list. Glowing reviews everywhere from the audio mags, forums and youtube reviews. Both mate well w/ PrimaLuna tube amps amongst others. I have the Mystere tube integrated amp (PrimaLuna sister company) w/ the high rated Schiit Mani phono pre and I'm leaning to the Tablette10, but the Harbeth is considered a tad better by some.
I used to have a room almost exactly that size, except higher. No matter what I put in, it was not that great. Until I figured out the room itself.

Maybe someone more adept at it could guide you through the room treatments (which may make your room noticeably smaller, by the way). Size of the speakers will, obviously, matter. Bigger may not be better.
The Halo integrated is a solid choice.  You may find an open box or 'B' marked unit at Sight and Sound audio.  Plenty of options, at 160 wpch at 8 ohms, it has a lot of power.  I own the Halo C2, purchased used via ebay, great unit, really good build quality.
You can purchase the Magnepan LRS direct from Magnepan, 90 day trial, if you don't like them you pay return shipping and that is all.  Option 2 trade them in during the first year for a higher priced pair of speakers.  They will never fatigue your ears.  Qualified down side, they need to be 4 feet from the back wall, to sound their best.  You will need a subwoofer or better a DBA swarm bass system.  Magnepans are also vampires, no sunlight on them.  If you are near a dealer they offer the same trade up option.  Or call Magnepan direct they may have some returned models to choose from.
I have called both of these companies, the employees know the equipment and can help with questions.  
dwmaggie,

Could Magnepan LRS be positioned sufficiently far from each other in this room? They are almost 15 inch width each. If they are at any distance from the side walls, they may be really close to each other. Aside from that, I was quite surprised how good they sounded. In a bigger room, that is. I have not heard them in a small one.
Ascent, Harbeth, 3/5s. Agree with gluppy re Maggies

Allocation of funds:
Speakers 40%
Cables & I/Cs 5%-used only
Subwoofer 5% -Used only
Room treatments 10%-Assumes DIY absorbing panels. 
20% integrated with decent DAC-Cambridge/Rogue
10% Tt
5% Dedicated power line
5% One good Recliner

Good luck !!