Hi dcc;
Another person on a related forum asked a very similar question, which I'll repeat here. For your budget, you or your friend could get a great deal on a refurbished Denon, Yamaha, Onkyo, HK or Pioneer receiver that will perform very similar to each other and should provide you/your friend with great performance for the money. While refurbs aren't for everyone as some folks have reservations for anything that's not new, they can prove a great option when trying to maximize the value of your dollar.
If you/your friend would consider a refurbished model, let me know and I can point you to a few possible options. If not, I can make some other suggestions for your budget as well. It may help to know what kind of budget you have to work with, the size of the room it will be used in and the majority of listening material (e.g. movies Vs. music).
There are solid entry level receivers that can be found between $200-$400 as well as solid mid-level receivers that can be found between $400-$900. All of the receivers in both groups will offer at a minimum 5.1 and the ability to accommodate a powered sub, but depending upon the features, the questions I noted above and whether or not you/your friend will need to buy new or consider refurb, the pricing will vary... -TD