need 5 speaker setup; have 1200

A friend has bought my Yamaha 2095 and is looking to purchase a 5.1 speaker system and he has approximately $1200 to spend. He is new to home theater. His system will go into an 12 x 20 combo living/dining area with wood floors. He will be setting up the system along the long walls (viewing and listening across the narrow dimensions of the room). He will audition speakers in town but will purchase on audiogon or other similar site.

Two questions:
1) What price (retail) speakers should he audition and realistically be able to purchase on audiogon or ebay for around $1200?; and
2) What would you recommend he audition in that price range?

thanks,