Budget Audiophile system under 2k

the Magnepan LRS possibly, depending on room size and listening and music type preferences

Some good examples so far you might also consider some of the NAD imtegrateds with Elac or Monitor, PSB speakers. If your friend doesn't have a lot of CDs he could look at a Node2i streamer as a source.

thanks for suggestions.  right now the source is probably a pc with external hard drive out via usb playing flac files via foobar2000.   i will look at the streamer  

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.