Is there a stereo receiver good sound compact size

I'll second the parasound line.

Others you may want to consider:

The Arcam Solo or the Cyrus Audio line of separates might fit your specs. If you can make enough room the Magnum Dynalab MD208 would also be nice but again not compact. The NuForce line (while not a receiver) is small enough to consider, just add a good CD player and/or tuner.

Any of the systems listed in this thread will be a worthy upgrade to your current equipment. Just be sure to audition your selection with the speakers you are considering/using (since you did not mention those).

If you want to go vintage, there's "The Advent Receiver" from the late 70's. Great phono section and compact size.
As with all vintage equipment it'll probably need restorative work. Cool retro looks, too!

Creek?

Mac 1900 go for it