you really need a bigger grow space or atleast one with a taller ceiling im sure a 250 hps could work well in a 2'2" by 2'10" by 4 ft tall space.
but you would have a hard time using one in the space you have now.
would definatly get better lighting and stick with soil, rather than go hydro with flouros
some hydro like dwc will have a little advantage over soil as the plants will grow faster but when it comes to yield you will probably not notice much of a difference between soil and hydro in a properly set up room with good lighting.