Brian, unless your co-worker is totally opposed to adding-on at a later date, I'd also suggest getting better quality speakers now, even if a full set couldn't be fit in to the present budget. My suggestion would be that he get the M22s and QS4s as you have. The M22s can at least temporarily do some of the work of the sub and center speaker. As I've mentioned several times here, the M22s alone have enough bass for enjoyment of most music, although a sub is highly desirable for some music(e.g., pipe organ)and some movie LFE. On the other hand, there's no substitute for the surrounds which are essential for an HT setup.
It appears, as Dean commented, that a better price could be had on that TV or a similar one and a better price on a refurb Denon is definitely available, such as this 689