which is your favorite inexpensive stereo system?

Staying strictly within the $1000 price range, I would recommend a used pair of Totem Arros @ ~$700 paired with an inexpensive integrated amp such as those mentioned by others (e.g. NAD, classic Marantz 22XX series). I think he/she will appreciate the greater range of the Arros in the long run and will be happy most of the money was spent on them. If your friend can afford just a bit more money for the amp, however, I would strongly recommend the used Blue Circle CS integrated for sale right now. I've heard the Arro paired with the CS and the combination sounds amazing.

My first system was sub-1k, and I used Kef Q1 monitors. I don't know if the quality went down in the meantime, because I now see they cost even less! Worth looking into. Second the NAD integrated, and even their CDP or a Marantz CDP, would round things up nicely with some left for cheap cables, connects, stands.

One pairing could be a lightly used Sophia Electric Baby integrated with Silverline Minuet monitors.May have enough spare cash from that Grover Cleveland to buy an ok used cdp.

I had a Denon mini system.
Sounded awesome really.
Comes with a sub woofer connection too.