I was thinking a Yamaha RX-V1500 $799 retail. Was also thinking Def Tech speakers. The ProCinema 60 system w/sub retails for $699 and will smoke HTIB solutions. I would however check into the Mythos line. They are Sexy and cool. Just a left and right with a sub would probably sound better than an entry level HTIB. Your friend will definitely be better off building a system 1 piece at a time with decent stuff than buying lesser gear all at once.
[Link: definitivetech.com][Link: definitivetech.com]