Budget Audiophile system under 2k

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? 

I put the following system together for my niece last year:

Marantz PM -8005 integrated amp ( used $600);

Elac Debut B6 bookshelf speakers on stands( $250 on sale)

SVS SB1000 subwoofer ($350)

Node 2i streamer $550

U-Turn turntable ($200)

total cost - $1,950. Sounds great. 

yes would have him considered used.   thx all  good stuff  

I have done this more than once using preowned components. Specifically 

1) Audio Refinement electronics - integrated amplifier and CDP with/without tuner 
2) Speakers: Spica TC50 with proper stands or Celestion SL700
3) cables. 
The SL700 that should not be used with a sub. Both are pretty forgiving as to placement. 
The key is to be patient. 

I was thinking Outlaw receiver and Elac speakers   Thoughts?

My thoughts are that's not the way to go about it. Oh yeah a receiver seems like the answer. But you just shot your friend in the foot. No such thing as a receiver that sounds good. Does not exist. Pure crap.

Regardless of budget its all the same. First you need to ask your friend about his expectations. His REALISTIC expectations. Impress upon him the REALITY that he can have quality OR quantity but not both. If he wants 7.1 surround with video and a player and turntable and tuner he can have all that. It will suck. He won't want to listen to it. But he can have it. No problem.

If he wants music though then he needs to be realistic and keep it simple. Either analog or digital but not both.

My opinion, if he balks and you are a true friend you will walk. Let him know you are ready to help when he's ready for high end audio. Which does not mean expensive. It just means the priority is music not gear.

Then if he wants music you explain everything matters and no one single part is any more important than any of the others. So you break it down. What he absolutely needs:
Source, amp, speakers, interconnect, speaker cables, power cords, cones. Absolute minimum. At this low budget level we can lump interconnect, speaker cables, power cords and cones into one category. Call it Source, Amp, Speakers, Accessories. Four items. $500 each. 

You can get a pretty decent integrated for $500. Ditto speakers. Never worth spending more than that on CD anyway. Could probably just stream and skip it altogether. BDR Cones, $120 for 2 sets of 3 for the speakers, leaves $380 for wire. Should be able to find decent Synergistic Research used, roughly $120 or so each no problem.

And there you go.

Just remember, you leave out the wire, the cones, and the integrated, you might as well just turn him loose at Best Buy.