building the best system I can?

What ever you choose, $5000.00 will go a long way if you buy used.

the room size "your friend" has is appr. 13 X 15. The money spent will be for purchasing for 2 channel. Right now lets focus on digital for sources with vinyl as a future addition.

As for the use of the studio 20's that is what "your friend" has on hand at present, but doesn't mean that can't be changed.

Feel free too ask more questions if needed. Thanks

Wmbode - I recommend a good integrated amp instead of separates to maximize sonic value per dollar spent. Many great choices, of course, and that approach will also save on the number of ICs. For ICs and speaker cables, the best sonic value I have experienced is Auditorium 23.

Regarding digital sources, can you be more specific? In example, a CD player or a music server system?

I need more input.

With your budget, go with an integrated amp. You need to decide on tubes or SS. Also assume that you will want to upgrade your speakers at some point in the future.
But first tell us if you will be using a dedicated CD player or a DAC paired with streaming music or server.
If you want a CDP, there are many good finds here on Agon.