Extremely budget minded system for under $500.00 ?

I am helping a friend look for a system to start in. Any suggestions for a $500.00 limit budget? Speakers, receiver and cd player, or all in one unit. I know that for most of us the ultimate is something we srive for (and the cost sometimes exceeds our initial expectations) but this is a serious question and may I add, a challenging one. The $500.00 is maybe even pushing it. I would appreciate some help on this one. Thanks