Bookshelf or Tower

Big speakers equate to big sound...however it can be difficult to get a balanced sound from large towers...this is where a sub can be handy....one can contour the bass to ones likening...although it seems counterintuitive to...I wasn't really a sub guy until I moved to towers...and hi pass the system...this works well if you have room modes and overhang...

If you have the room for it, a pair of Vandersteen Model 2's and a pair of Vandersteen subs.

"I am considering: Paradigm S2's, BW 805d but then I think at those price levels I could get floorstanders but I don't see why the floorstanders cost so much more. So confused."

I think model 2's, without the subs will easily outclass the Paradigm and the B&W. But that is just my opinion. You really need to listen to them first.

I hope you are near a dealer where you can audition a pair of B&W PM1 monitors with their PV1D subwoofer. I really wasn't much of a B&W fan until I heard these. The monitors are gorgeous and your wife should love their appearance. The sub can blend seamlessly.

The total price is right around your target price. If you don't go too loud, this is a really musically satisfying rig, which gives up all the musical detail while never drawing attention to it. I heard this setup right after auditioning ARC tube gear driving the Wilson Alexandria XLF, and this B&W setup basically gave you the same thing minus that last half octave of bass slam and sense of limitless dynamics. Within its dynamic limitations the B&W PM1/PV1D combo comes surprisingly close.

Call me crazy if you want; just try it out before you do.

My room is about 15' by 30' with lots of wood furniture in it and tile floors. It is a combo dining/living room and has vaulted ceilings to an 11' peak.

I plan on auditioning speakers this Friday and the shop is a big B&W and Paradigm dealer so I should be able to listen to PM1's and 800 series and all the Signature Paradigm's too.

I like the idea of book shelves just because 70 lb towers are a beast to move around and from what I have been reading the smaller bookshelf cabinets give better imaging which I love.

Floor standers inherently don't cost a lot more - but to do them well does. The reason is resonances - to make a standmount or bookshelf non resonant (at least reasonably so anyway - to really attack it is very costly) is not too hard but a floor stander is a lot more costly. Then you have higher transport and delivery costs.

That said there are many excellent floorstanders at or below $5k. In fact I would suggest looking at some speakers a bit under that such as some of the Salk Audio models:
http://www.salksound.com/about%20us.htm

Martin Logan:
http://www.martinlogan.com/electromotion/em-esl.php

Magnepan:
http://www.magnepan.com/index

Go out and have a listen. You should be able to find dealers for Martin Logan and Magnepan and some posts on Salks forum at Audiocircles should dig up some people in your area with Salk speakers to listen to.

Its not a race - take your time and listen to gear to get just what you want.

Thanks
Bill