Setting the speakers to small will definitely make a difference and I suspect it may solve the issue entirely. Your room is not too big for Betas in a 2.1 bookshelf system.
On the subject of receivers, The reason I chose it was simply because Accessories4less sells it as a factory refurb. I have bought two receivers and two CD players from them and all have been excellent. I actually returned a receiver (which I mistakenly thought was defective) and was amazed at how easy the process was (they didn't treat me like I was trying to "cheat" them). I realized later that I misunderstood how the settings were supposed to work. If you search this forum for Accessories4less, you will find lots of posts from happy buyers.
A4L also sells Onkyo, which is a good manufacturer of receivers, However, among the currently available offerings, I felt the Marantz offered better value - it is an extremely capable unit for that price! The HK units are also good (you just have the misfortune of getting one of their "economy" units), and, I have to say that they do look slick - with the the blue volume knob. If you want to upgrade and stick with HK, there is "Harman Audio" on ebay. However, I'm not sure of they sell HT receivers. All I see today are stereo receivers.
http://stores.ebay.com/Harman-Audio
Cheers,
Kurt