I definately know how you feel and can remember my first time playing around with HT equipment a couple of years ago. Here is my two cents...

I currently have the SVS - SBS-01 5.1 Set-up in my apartment living room and it is a GREAT set (one of the best for its price range), BUT not good for corner placement. You are right about the size, they are on the large size for bookshelf speakers and they would not fit well into corners. You will lose a lot of sound due to acoustics by placing them in corners.

Out of the speaker sets you listed:

- PSB Speakers - Alpha Mini Theater System ($895)
- Definitive ProCinema80 ($1000)

Are the best for your specifications in my opinion. I have auditioned both sets in neighbor's houses. I just feel they will create the best acoustic blend for your room and can still produce quality sound throughout your corner placement.

Let us know when you are ready to look at receivers and DVD players and I would be happy to list a few good ones once we know which speaker set you choose.

Happy Hunting!