Rbirke, I suggested a 501, and that the IO would require a stretch of budget. They can be had for about $2700 used, if you look for awhile. You are right, it would cost considerably more than his budget. But it would be a one time buy, and he'd be set.
And if he selected the Teres 255 instead of the 265, he'd save $900 right there and still get a hell of a good table. Heck, my 245 is a hell of a good table, and a 255 is better than that! A 255, OL Encounter, Shelter 501 rig would be only $4900 retail. This would leave $2100 for the phono stage, which is only about $600 shy of getting a good used IO. I think we are getting pretty close.
If he could get a dealer to cut him a 10% discount on the arm/cart combo, then he'd only be about $400 shy of the IO. If I know audiophiles like I think I know audiophiles, the $400 hurdle is capable of being overcome. I know I was willing to eat hot dogs for awhile to get my new amp!