If you can place them 20"-24" from the front wall and 30" from the side walls I would look into the Silverline SR-17's (they would also require sturdy 28" stands). These are still my favorite stand mount monitor to date and they do sound best with high current feeding them.
In such a small/square room I would avoid floorstanders as you will not want the bass driver (unless it's adjustable as with a sub) close to the floor.
For less money maybe try the little Spendor 3/5's (think that they are around $1K) or the Reynaud Twins, again you will need to budget for quality stands. I think that efficiency wise the Spendors might work better with the Krell as the Twins run mainly @ 1 watt (or less) in a small area.
That said, with such a room I would trade the Krell for a nice SET power amp and then base the speaker selection on this addition. You only need a few watts in this room (with reasonably efficient speakers) and this is where a decent SET shows its stuff.
