Sdarr found some good stuff and craigslist is going to be your friend on this.
A set of floor/tower speakers should be all you need for this. Small spaces tend to amplify bass a bit but you can always add a powered sub later.
As for what brand or specific model, just go with whatever you like. I only know what my stuff sounds like and can't comment on brand x being better than brand y. I think any receiver that puts out around 75 watts/channel and speakers that have 8" or larger woofers will be what you want.








