New receiver

If you are in NY TriState area you can ask these guys DTV Installations. They do pro A/V set up. Or just check their Knowledge Base you may find your answer there.

For $1,000, your friend could actually afford some separates: a preprocessor and an amp. In most cases, separates will handily outperform (sonically, not gimmicks) a similarly priced receiver.

Tell him to look for something like the Emotiva UMC-200 preprocessor and an Emotiva UPA-500 amp. Unfortunately, Emotiva has just recently discontinued these items, but they should be readily available on the 2nd hand market. And, because they come with 5 years warranties, the chances are very good that he could get a set still under warranty.

Another really good option would be the Sherwood PT-7030 preprocessor and an Emo amp. The Sherwood is a very good preprocessor that was last sold by Emotiva. It has all the bells and whistles you could ever want. Found one on FleaBay for $585 - Buy It Now:
http://www.ebay.com/itm/Sherbourn-PT-7030-AV-Surround-Preamp-Processor-/231670967313?hash=item35f0aa6c11

A real bargain setup would be this Outlaw 990 Preprocessor for only $280 Buy It Now:
http://www.ebay.com/itm/Outlaw-Model-990-Pre-Amp-7-1-Channels-Tested-Working-/391243873137?hash=item5b17f3bb71

You still need a 5-channel amp with this and those can be found on FleaBay or here on A'gon. Here's a nice Adcom GFA-7500 amp on A'gon for $450:
https://app.audiogon.com/listings/multi-ch-adcom-gfa-7500-5-channel-amplifier-price-reduced-2015-09-01-amplifiers-24551-forest-va

That amp will walk all over ANY amp you can find in a receiver!

There are many more choices for $500 and under. Long story, short: shop wisely and you can get a high performance system for mid-performance money...

-RW-

If high performance is important to your friend then R1's suggestion is a good one as you hit the $1000+ price range. If they're just looking for something that provides decent performance, convenience, and reliability, I'd look at Yamaha AVRs. They get relatively high marks for sound quality and I don't see people reporting problems with them, unlike Onkyo. Also, if it has enough features and power you may well get everything you need from a $500 AVR and maybe even less. Best of luck.