Can't recommend anything but Studio monitors for proper audio.
budget is 120... :(
Budget aside, you said you have very little space, so that's why I meant I couldn't recommend anything :).
Do you have a DAC and speaker amp?
You can get cheap 2.1 speakers with built in amps, that's what most of them are.
Check head-fi.org for recommendations, as they'll be a lot more knowledgeable about audio. I only use headphones at the moment, so haven't looked into them for a while. --- Console war in a nutshell: http://imgur.com/xA6GJZ9
I also would go wither powered studio monitors and have a nice full range 2.0 setup. Any speaker kits branded as "computer speakers" in a budget price range are crap and bloated with distorted bass, in my experience.
I currently use some M-Audio monitors that I paid $100 for and they use very little space. I can't blast them loud but for my needs they are perfect. --- Kelemvor Lyonsbane