It's going to be a 'in the ears of the listener' issue more than anything, given your budget constraints. They should however be 'acceptable' for that space/size. Hint: Use as much physical separation as possible between the front right/left speakers to expand your HT surround sound stage. Some degree of tweaking may be required until it sounds good in your particular location.
Actually, my calculations would indicate you would have approximately $300-400 remaining potentially, depending on where you sourced everything. Why not put that toward better sounding speakers(?) Spend some time over @ AVS or read through older threads here for specific recommendations that might fit your budget. You may be surprised at what a couple hundred extra dollars could buy
My living room is 18x23w/9ft ceiling.i want a decent system. Was looking at the marantz 1403 receiver.Would a system like energy take Classic be too small? Trying to stay around $1200 for speakers and receiver. It would be mainly for tv nd movies.Any suggestions would be appreciated. Thanks