You're in luck, I was recently shopping for speakers in that category as speakers for our secondary system.
Here's the ones that I liked
- Boston Acoustics CR67
- PSB Alpha B
Out of those two: I'd pick the Boston which is very close to being around 10" high. The Alpha is a bit bigger too, which may be too big for you.
Both list for around $250 USD but after negotiation but you should be able to get either around $225 I'd imagine
I did NOT like the Paradigm Atoms. Very disappointed in those when I heard them. They sounded constrained and congested.
If you can stretch to the $300, the Epos ELS-3 is one of the best speakers in this price range and meets your size requirements. The other one is the Monitor Audio Bronze 1. As much as I like to recommend Energy speakers as a long time Energy fan, the Epos was a superior sounding speaker to any of Energy's offerings in this price range, maybe even better than the C-3 that I own. I just find the treble to be more detailed and airy without sounding harsh. The speaker has really nice mids that do vocals right.
I bought the Epos
http://www.epos-acoustics.com/mainsite.asp?logging=1
review:
http://www.stereophile.com/loudspeakerreviews/104epos/