In that price range, I think you could do much better than Klipsch. The problem is getting decent range/fidelity with those dimension limitations. Also, as I've mentioned previously, I would much rather buy used (but well taken care of) quality, than new mediocre.
Here are a couple bookshelf pairs on Audiogon that are worth checking out IMO:
Dynaudio Contour 1.1
Vienna Acoustics Haydn
Totem Dreamcatcher
Silverline SR12
The Dynaudio's would be my first choice out of that bunch.
Other contenders in that form-factor on fleabay:
Totem Model 1's
Definitive Technology Studio Monitor 350
