A 10' x 12' room is probably going to be tough on anything in the bass (below app 150hz). I'm a great believer in digital room correction for most installations, but I suspect that it will be unusually beneficial in yours.
I'd personally take the co-ax out of the ZP90 into a good AVR that is Audyssey equipped. You can probably find a NAD, Marantz, Integra or Denon on the used market for somewhere between $500 to $1K.
Spend the balance on good, reasonably full range speakers. There are a lot of good choices out there in the ballpark of your remaining budget - but there's so much personal taste involved that a specific recommendation is difficult.
Good Luck
Marty
I'd personally take the co-ax out of the ZP90 into a good AVR that is Audyssey equipped. You can probably find a NAD, Marantz, Integra or Denon on the used market for somewhere between $500 to $1K.
Spend the balance on good, reasonably full range speakers. There are a lot of good choices out there in the ballpark of your remaining budget - but there's so much personal taste involved that a specific recommendation is difficult.
Good Luck
Marty