What Integrated Amp & Speakers for $1,000?

My brother-in-law is finally going to take the plunge and become an audiophile. The process started when he purchased my old Basis 1400, w/RB300 arm. He then bought a Grado Gold cartridge and a NAD PP-1 phono preamp. (At this point, he ran out of money, due to his job situation.) Therefore, he is running this through a relatively inexpensive Sony, all in one box, HT system. (You can imagine what it sounds like, especially since it comes out in 5.1 surround. Yuch!)

Anyway, he now is coming into some money, and wants to build a decent system. Obviously he is going to keep the analog source. I can supply him with a CD source (an old Sony CDP 707ES), which at some point he will probably get a DAC and just use the Sony as a transport, but that is way down the road, as this will be his secondary source, as he really likes vinyl (Smart man!) I can also provide him with decent interconnects, speaker wire and speaker stands from my obsolete stereo accessory closet. (Don't we all have one of those!)

However, he is going to need a integrated amp and speakers.
(I will be lending him my bedroom speakers, some Paradigm Titans, until we find him some better speakers, based upon your suggestions.)

I have some clues on what to get for speakers (Paradigm Studio 20s or 40s, or Spica 50's or something similar.) He does not need deep bass as he lives in a condo, with neighbors on one side. (Plus, it will be upstairs, so floorstanders with deep bass would sound really boomy in his smallish sound room. So I guess I am looking for a really nice, inexpensive monitor.)

As far as the integrated amp is concerned, I have no clue whatsoever. (I have never owned one, having always had seperates.) I could guess and get him a NAD or Adcom, but it would be strictly that, a guess. (If the integrated has a decent phono preamp built-in, the price can go up $50, as we could sell his NAD PP-1. The NAD is okay, but nothing great. I would rather had something better actually.)

So here are the guidelines:

Integrated amp and speakers for $1,000 combined.
Buying used is best.
If the integrated amp has a built-in phono preamp, the budget goes up to $1,050.)
Tubes are okay, I think. (At this price range, I am not sure he can get into tubes, but they would probably sound better than any SS at this low price range.)

Thanks in advance for any help you can give us!