Wouldn't going directly out of the turntable into the PC (via analog) have some troubles because of the level of the signal and the lack of RIAA equalization? The few turntables that I've dealt with, and the many that I've read about, all require either a phono stage preamp, or a phono input on the receiver/integreted/preamp. Therefore, I would expect that going directly into a sound card in an effort to transfer vinyl to digital wouldn't yield a very good result. I think that's what might have happened to your friend.
It would be possible to apply the RIAA curve in software (after the music has been digitally sampled). Of course, you can also adjust levels in software, so perhaps it's possible to take care of these two issues after the fact. However, I'd presonally prefer that they be done in the analog domain, and that that recording occur at an appropriate input level.
If you have a receiver/preamp/whatever that has a phono input, and you are happy with its performance, you can take the output of that and go into your sound card's analog inputs. Then RIAA EQ and levels are both correct.
I do believe that some turntables have the phono stage and RIAA EQ built in, but I think they're not the type of thing you'd want in a normal system. If you're interested, though, you might be able to find them via Google.
The above posts are generally right about the USB stuff. I'd probably pass on that. The more bells and whistles on a turntable, the better (IMHO).
The above recommendations for TTs in this price range are good ones -- Rega, Music Hall, perhaps Thorens. You may also consider used and then replace the cartridge.
Good luck!