best speaker in a small room in the $2000.00 range

You might audition the Dynaudio Focus 140 if there is a dealer in your area. It just got an excellent review in the current issue of Stereophile.

I have also been impressed with the Paradigm Signature S2. You currently own a pair of Paradigms, so you know their general reputation. The "Signature" series is a step up in performance and is relatively small in size. Here are a couple of links to reviews:
1. http://www.soundstage.com/revequip/paradigm_signature_s2.htm
2. http://www.goodgearguide.com.au/index.php/taxid;2136212657;pid;892;pt;1
3. http://www.stereophile.com/standloudspeakers/705paradigm/

These are all good ideas...I forgot to clarify...I would probably buy USED...so the dollar amount for a new set could be higher...maybe the 2500.00 to 4000.00 range???
Does this change any suggestions??
Dean

Try the Tyler Ref monitors. Front ported so you can place near the wall. They are revealing of any equipment placed upstream but can sound "reference quality" in a small room.
May find used on Agon for $1000 or less.

I enjoyed ProAc Response 1SCs in my 12'x14' room for many years. Now I am using the floorstanding ProAc Response 2.5s. Both good!

Merlin TSM-MM are just what you need. You will never need another speaker