Yamaha SE series speakers would be fine for home use & are on sale right now for $179 each. These are on sale as they are going to be redesigning them with newer components & connectors so they are going to closeout.
This will be a little more than the room but there is nothing that says you have to turn the speakers up to maximum either, the sound will be fuller than a smaller speaker as well. A good rule of thumb is to buy more than what you think you'll need, that way if you do happen to do something in the future that needs bigger, then you have it.
As far as your muddiness, once you get a small mixer in the loop, that should take care of the problem as you will be able to eq the mic & music separately. Take a look at the Alesis Multimix 6FX for $99. This has effects built in, 3 band eq (high, mid, low) per channel, 2 mic channels & 2 stereo channels. Should work perfect for home use.
I wouldn't buy the Audio 2000 stuff right now - no need, you can make your home reciever sound fine with the mixer & new speakers (hooked to your aux/B/2/etc... speaker connecters). Make sure when you have the secondary speakers turned on, to turn your MAIN speakers off - with the flip of the switch on the front of the reciever, otherwise it could be a bad load for your reciever.
If your sound is still muddy sounding, then look into a BBE Sonic Maximizer. This will make everything just a little crisper & cleaner plus if you are lacking bottom end, it will add this as well.
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