Magnepan for a small room

for a room that size, i'd go w/ proac or harbeth monitors

i second (or third) the von schweikert or proac recommendations; alternatively i see rega rs5, totem staaf or totem model 1 listed within your budget. placement issues aside, the maggies absolutely would need a sub

My opinion, you need a sub in any room, with any Magnepan short of the 3.6.

Thanks to all for you help and insight.

do you think a floorstanding speaker would overpower the room? I don't want to over kill the room but I just want a natural bass sound

I would say that it depends on the speaker, but most full range speakers are going to be very tough to place in a 10x10 room. Besides size you have the shape (square rooms are very tough) thing working against you.

Small monitors or highly efficient speakers designed for SET amps might be your best options.