Well Seajungle:
If I were stranded on an island, and I didn't have nothing but $2,000.00 to try to live on until I had other means of income, and if I wanted to build me a stereo system on the cheap, here's how I would go about it.
Speaker System: Sound Dynamics RTS-3 -- $200.00 (Pair).
Integrated Amplifier: NAD C350 -- $450.00 (New) or $250.00 to $300.00 (Used..... depending on whether it is in mint condition or not).
CD Player: Sony DVP-NS500V -- $150.00 (your friend should be able to get this one at this closeout price at your local Best Buy or Circuit City)(with this player, he will be able to have a DVD Player, a CD Player, and an SACD Player all in one player)(he can listen to his existing CD collection, look at a movie every once in a while (provided he hook up a TV), and try out an ocassional SACD every once in a while....... originally retailed for $300.00 when it was brand new).
Cables: Audioquest, Cardas, Monster Cable, or MIT (and in either case, the cables I would get from these manufacturers would be the entry-level models in their lines..... should be no more than $100.00 tops).
Power Conditioner: A Radio Shack model would be fine for this system. Shouldn't cost no more than $50.00 tops.
This would be the system I would put together right now if I either had no desire to shoot for the "state-of-the-art", or if I wanted a stereo right now, but did not have the money to otherwise put together a good one (not to say the one I've listed above isn't good...... so no pun was intended).
System Price -- $850.00 to $1,000.00 (depending on whether or not you buy some items used, and whether or not your friend cares about using quality cables or power conditioning).
Good Luck.......
--Charles--