Suggestions for in-wall home theater speakers?

My experiences with inwalls are that the sound is going to be way compromised, so why get picky? No matter what you use, the sound isn't going to be supper stellar.
I would suggest looking into some of the horn loaded inwall designs myself. Klipsch probably makes some. You'll need an EQ for his system, as there's no other way to get around the boomy/peaky sound that's going to happen with inwalls. The inwall location excites all the room modes, and makes for an uneven sounding pressentation. The inwall situation is already a sonic compromise, so you'll need to try to make up for this with the EQ.
good luck

Check out Legacy Audio (www.legacy-audio.com) They have some not exactly in-wall but mount on the wall like a plasma TV. This might be better than an in-wall setup.

"Moderate" being relative, there's a Triad InWall Silver System for sale now on Audiogon for $2750. I've been urged
to put my speakers in the wall, but refused because of
quality. However, as I researched the Triads, they sounded much better than the others I've looked into and might be
a possibility for your friend. 90db sensitivity, 4ohm

I have a Radia LCR in wall speaker for as a rear extra surround. Sounds great!!! www.bgcorp.com.