Randy, I think that your friend should start out with the basic speakers needed for HT(mains, surrounds and sub), initially use a "phantom" center and leave any Atmos thoughts for much later, if ever. Suggest 4 x M2s for $736 from the Outlet. Still an excellent sub at a moderate price is the Hsu STF-2 for $405 with shipping.
The best buy at this time in a receiver which fits that budget is the Denon E400 factory refurb from
A4L for $250.
He'll presumably need a disc player for music and movies and several are available from A4L and others in the $100-$200 range which don't differ greatly.
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