I once had a 50in RPTV in a 10ft x 10ft area. It was dizzying cuz the TV was so near our faces (cuz of the
depth of the RPTV).
A flat panel TV is better recommended.
For the smaller 10ft by 10ft room, the lower model receivers are ok (ok na yung 2807), and you dont need FS IMhO, BS would do plus a good sub.
There is a risk of FS being boomy in such a small room (had a similar experience), specially if not acoustically treated.
I would recommend that you pour the savings you got from downsizing from a FS and high model receiver to:
1.) a good 10" sub (HSU, SVS, Atlantic, Velodyne or Klipsch)
2.) upgrade to
mid level (higher than entry level) BS setup (Atlantic, Klipsch).