I read about someone finding (but missing out the next day or something) a deal on the Onkyo HT-S990THX for $570. I think you can get it at around $700. If I had to absolutely have every component from the get-go, and at this budget, I think this is what I would do. I bet he will be very happy with it. If and when he gets more discerning, etc, he might upgrade the sub first, then center, etc. But maybe that day won't come... (unless he starts frequenting forums like these
)