The current (January 2010) issue of Stereo-pile positively reviews the new ASUS Xonar Essence soundcard, and specifically prefer it to the Musical Fidelity DAC. It has been designed from an audiophile perspective, and in particular has shielding/grounding strategies to avoid noise from the PC.
At a street price of $180, this would save your friend $100 and possibly produce a superior result, plus it has a 1/4" headphone jack too.
I have no personal experience with the ASUS card, but at the price it looks like a great option!