Small room Speaker suggestions

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.

I am a fan of single driver/crosoverless designs, and would suggest a pair of the very fine Omega loudspeakers, some of which can be found at good prices here, in Audiogon.
This genre of loudspeakers can produce marvellous music in small rooms, where a subwoofer would overwhelm the room, and the small dimensions of the room can actually enhance the interface between the speakers and the room, making a sub unnecessary for many applications.I hope this helps.
Regards.

Some good suggestions here already...I would add the following:

Aerial Acoustics Model 5 - excellent focus and punch, and will not cheat you on quality low end response.

Martin Logan CLS IIz - can be magical in a small room with the right amps.

Wilson Benesch ARC - very intriguing stand mount monitor at the top of your price range, used.

Energy Veritas 2.1 or 2.2 - excellent value and a very good sounding speaker, drivers integrate very well.

I am getting a pair of Green Mountain Audio Callistos next week, and would be happy to share thoughts with you on those, though it will take a while to break them in.

Happy hunting!