Looks like you put together some good stuff. Here's another suggestion on the electronics. Go to the following site:
http://www.accessories4less.com/
They sell new and "factory re-conditioned" Onkyo and Marantz. They are listed on both Onkyo and Marantz's site as an authorized dealer. I have dealt with them recently ( got a 6 disc DVD changer, Onkyo 704)and they are good. They currently have the Onkyo 505 receiver, re-con, for 159.00. I know your freind doesn't "need" HDMI, but I believe the 505 is better than the Yammy your suggesting just on other specs, like power, connectivity, etc, and if he ever want's to add another 2 speakers, he can,, because it's a 7.1ch receiver. With this receiver, he'll have more money left over so he can at least get cheap HDMI cables for his 360 (assuming he has a newer one) and his PS3.