I have obviously not seen the space that you are referencing but as to the speakers you are looking into I can vouch for the K12s. They are great sounding speakers and can throw a good amount of sound for how small they are. They also have built in crossovers that work really well. I would recommend putting that on and letting the sub do the heavy hitting for you on the low end. I wouldn't go with Ksub but have you looked at the KW181? I can't say that I have personally used it but I have done a lot of research into them and heard a lot of good things. Another thing that you may want to think about that would free your budget a little more is to go the used gear route. You can typically find some good gear but the depreciation hit has already been taken by the person that bought them new. Also, in regards to the flying, the K12s do have optional flyware available. Hope this helps!
