Bookshelf speakers, budget £1000
I never liked that out-of-head soundstage thing.
The Genelec 6010a look ideal for that size space then!

http://www.genelec.com/products/2-way-monitors/6010a/
And review (with the sub that I doubt you will need)
http://www.soundonsound.com/sos/may09/articles/genelec6010A5040A.htm
http://www.whathifi.com/review/eclipse-td-td307-paii
Speakers can be wall mounted to save space.......
http://www.whathifi.com/review/eclipse-td-td307-paii
Speakers can be wall mounted to save space.......
Considering he has a budget of over £1000 I think that he could get something better than those Eclipse speakers.
Dali Mentor Minuet.£ 899
Yes, nice idea.
Ahem, And to keep you happy. To spend the all the OPs money I now recommend the Beo Sound 4 wall mounted. Can I also recommend the
http://shop.xtz.se/dsp/mh-800-white?stat=1
but they might sound a bit shonky at 490euro
There a broad selection of equipment spanning the OP's budget .
I hope this is satisfactory.
No offence intended. 
No offence intended. 
none taken
How amazingly well behaved everyone is being especially given that a certain brand of active speakers has been recommended!!
Three cheers to everyone. Jolly well done.
Ps. thanks for the update John.
my worst fears have been confirmed
i considered buying speakers before but gave up due to the small room and my lack of knowledge about them...
but after another round of recommendations i still remain positive 
i think i'll read couple of reviews/comparison and see what happens.
thanks again for helping me out 
Unfortunately, not all actives are created equal.
So some may be less than one million times as good as passives then?
And there was me thinking inflation had only gone up by .1%.
I think some small Genelecs could be ideal for you. I've tried some passive speakers (Monitor Audio GS10) up close for near-field and really didn't get on with them. I don't think I'd like my AVI ADM9.1s on my desk either, but only because they're too big.
Here's my set up using a pair of Genelec 6010As plus their matching sub. It took me a while to get them set up so that I was happy with them, but I now really like them and think they're ideal if space is tight. Sorry about the mess 
BTW, if you add the matching sub (hidden hehind the NAS in the photo), you get a handy little volume control you can see under the left corner of the monitor. More importantly, the sub also adds a 80Hz crossover meaning the small monitors don't have to deal with too much bass.

For scale, the monitor is 24" model and about 56cm across.
6010As are £400 a pair and the sub is also £400.
Mess??????????????????? You should see my wife's desk

You should see mine when it's not posing for a photo shoot! 
hey WinterRacer thanks for posting 
i've actually decided to up the budget a little, and i'm set to buy the 8030A. and if i find their bass lacking i'll pick up the 7050B.
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regards
Pretty ... and pretty proud of it