B&K AVP1030 Dolby Digital Tuner/Preamp Item: 1003079453
$495.00
B&K AV2500 Multi channel Amp Item: 1003450313
$450.00
Then I would go with Sean's suggestion on the speakers. That sounds like a great deal, and in case it wasn't already mentioned, you want at least the Left/Center/Right speakers to have the same drivers.
Now, for what I feel may end up being the most critical component, the source! In his case, it sounds as though the DVD player will be doubling as his CD player. I will assume for a minute that your friend's television is not Progressive-Scan capable - go get a Sony DVP-S7700, they can be found new on the internet for around $500.00. If he has a Progressive-Scan TV get the Sony DVP-9000ES, new on the net at $1000.00. Either way you're under $3000.00. Sure there is tax, shipping, etc. And believe it or not, cables ( speaker-wire, interconnects, power cords ) can make a significant difference, but start with the cheap stuff and upgrade as your finances permit.
The used amp and pre/pro may or may not still be available, but I was just using them as examples of what can be found, if you look. Heck, if your friend does a little searching he will learn very fast about the HT/HiFi world and maybe be able to make some of these decisions on his own. Either way he'll have some fun. Good Luck!