I would see about expanding his $500 to a little over $600 and get M2 from outlet at $306 and a cheaper receiver from your choice Best buy or Future shop. Both have decent ones in the $250 range(JVC, Panasonic) and he could get a cheap DVD/CD player used or new. I have seen some in the $60 range new at Future shop, although I have no idea how good it is. I looked at minisystems and they seemd to be a waste of money when you could go this route and do so much more later.
I have a riend that bought the JVC and it sounds/powers his speakers really well. He now has the ability to use it for HT or with his computer. Just my 2c.


Jason
M80 v2
VP160 v3
QS8 v2
PB13 Ultra
Denon 3808
Samsung 85" Q70