How do I choose a decent system?

You've got an 800-square-foot room and you're worried about the system being too conspicuous???

Seriously, it's hard to give specific advice for a very unspecific problem (maybe a turntable; maybe an MP3 player?), but the general advice I'd give is to budget about a third of your $2000 for speakers (PSB, Paradigm, and B&W all have good reputations in this price range, but they're hardly the only ones) and another quarter for an integrated amp (NAD, Rotel, Yamaha). That leaves a good chunk of change for sources--tuner, CD, phono (plus phono stage), etc.

And listen, listen, listen.

Westlake Lc4.75 Pro monitors
Bryston B60 with MM phono stage
MMF turntable/arm/cartridge package
NAD C541i CD player
MD FT-11 tuner
Rat Shack cables

I would look into Sherwood Newcastle products for your rec.
and cd player. Spearitsound.com has a R-725 for $279. The
CDC-680T CD Player would most likely work with the receiver's remote.(Check w/dealer as the CD is current model
and the receiver is not.) As far as interconnects, I'm using
Van Den Hul D-102 and I recommend highly.(Around $115 .8m)
Also AQ Quartz is a fine interconnect. A Music Hall would be a fine turntable choice.($200) This would leave you
around $1000+ for spks. and wire. To fill a room that size,
PSB Bronze spks w/Kimber Kable 4VS wire. You need to listen
to as many products, and hopefully, be allowed to audition
in your home with a return policy if things don't suit your
tastes. Do look into Sherwood Newcastle because for the $$, IMO, they are well worth the price. Good Luck, Bill.

Check a Jolida hybrid integrated for amp/preamp ($600)or a creek integrated 4330, a marantz CD6000 OSE CD player ($500), PSB/B&W/Epos speakers ($1100), definitely biwire with Kimber ($200 used), good interconnects (there are many for $50 ea used), some vibration dampers......... there are many combos, I definitely think that going into the used market may help a lot (but be patient and you will be rewarded).......Good listening