Paul,
I'm delighted that justice was done,as acquiring any sort of disability benefits is a tough nut to crack!
It took me two years to be awarded my disability,as I was rejected the first time and had to retain the services of a lawyer the second time around.
My attorney took 30% of my back disability pay,but I was still left with enough to get my studio under way and man,what a beautiful feeling that was!
As for the monitor thing,it's a bit tough to suggest a good recommendation,since we are in different countries(as otherwise,I could pick quite a few different monitors off the top of my head and recite exactly how much they all cost).
I'll begin by saying,that since your budget does not allow room treatment...you could always use some large picture frames and cover them with a thick cloth(this is especially effective for taming the bass turbulence from a rear-ported monitor).
In terms of powered monitors,I would steer clear of Alesis altogether,as their internal amps are noisy & weak in volume.Yamaha monitors in this price range are good to avoid and their monitors are overpriced anyhow.
The JBL 2300 series monitors may be in your price range(or slightly beyond it) and I think that's something worth looking into(but I've never heard them myself).
As for the KRK's...well...the previous Rokit series were dreadful,but the 8" ones were usable.I haven't heard the updated Rokit series,so perhaps they've improved upon them....though I imagine that the KRK Rokit 5" monitors are going to be very weak in the low end.
However though,it may all depend on whether or not you want front,or rear ported designs-but in the 5" monitor size,the differences are neglidgeable,as the sonic characteristics are virtually indistinguishable,it terms of port turbulence.
It's really difficult to find monitors with a usable low end,but I have found that M-Audio is the absolute best in the budget arena and I recently bought the BX8a Deluxes(got a super deal on them),as I paid $359 (USD) for the pair and I am overjoyed with them!
There's plenty of thump to them(but room treatment is a must)...so in your situation,my best recommendation to you,would be the smaller M-Audio's...particularly the BX5a Deluxes.
-Thom