Budget Audiophile system under 2k

I disagree that an audiophile system can't be developed at this budget. It is all about the intent, the desire to get the the greatest sonic experience for the investment, which requires a learning curve and research. I would think that for most of us this is an ongoing process. Certainly is for me. A very enjoyable system can be developed with this budget.  

I agree that a little more information on the desired sources would be beneficial.

The Outlaw receiver is a common/quality recommendation. However has many features that may not be needed, FM tuner, phonostage, and DAC. Another common/quality recommendation is for the Yamaha A-S5,7,801 series integrated amplifiers which also possess internal phonostage and DAC. Might be best to identify the speaker 1st, thereby having an idea about power requirement. Avoid speakers that are hard to drive. Look for quality over quantity regarding power. There are many speakers that would fit, Elac, Wharfdale, PSB, Dali, and others.  For the small room under consideration herein I usually recommend stand mount types however there are small floor standers that would fit into this budget.

Again, what source(s) are to be considered?  

Sounds like your friend need a DAC, integrated amplifier, and speakers. 

There is a thread under Digital concerning budget DACs. Might check that one out. The DACs in the Outlaw and the Yamaha A-S801 are thought to be good also. RE the Yamaha the DAC in the 801 is may be better that that in the lessor expensive models of that series, I does have different specs. I own the A-S701 and use the DAC with my MACBook Pro with a USB/SPDIF converter as the 701 doesn't have USB input. The 801 does have USB. Both have coax and toslink. I believe the amplifcation in both the 701 and 801 are the same (100wpc).  I also own a NAD C356BEE (80wpc) integrated which lacks DAC and phonostage. It has a warmer sound than the Yamaha, as does the C326BEE (50wpc) which I once owned. The aforementioned amplifiers were used in my secondary system which had a retail price around $2000. All bought used though nearly new. I am currently driving a pair of B&W CM5s ($1500 when new) with the 701 and am pleased with that combination. This secondary system is a revolving door.

Would your friend consider used components? 

There is a used, almost new Music Fidelity M2si integrated listed on AG by a member with great feedback. $450+ shipping.

If I didn't already have so many amps I would consider this unit for my 2nd system. 

Well as one can see there are a multitude of quality new systems that can be put together for $2000. Also a lot of quality used $3000 to $4000 systems for the same budget. 

That Music Fidelity M2si at a new price of $599 interests me.