Design an entire system for $800? ?

Sony DVP-NS500v for $150.
Refurbished NAD C350 amp from Spearit Sound for $330.
Sound Dynamics speakers for $150 from Stereo Trading Post.
Entry level Monster cables from wherever.

So let me get this straight. He is too cheap to buy good equipment. He is too busy to look for a good deal in used stuff. So he doesn't have the time or money to spend with his audio gear. Why does he want a stereo? Have him buy a Bose Wave Radio/CD with a remote. This way all his friends will think he has the ultimate(Bose), and he gets out cheap, and he won't be spending any time listening to it anyway. And with the remote, he won't even have to look at it, as that would probably take up too much of his time.

I think TWL offers a great solution. Even the guy who started the thread is passing the buck to us to help his cheap friend. I love it.

Another viable solution might be to purchase broken equipment that looks impressive to provide the illusion of a good system. You know, big beautiful speakers with burned out drivers, and electronics that light up but don't work properly could be bought for pennies on the dollar. Heck, he could save a lot on interconnects and speaker cables... Set up would be a snap because he wouldn't actually need to connect it together. The equipment could be placed about the room wherever it looks the best.

Then he could gaze upon the gear proudly while humming his favorite tunes to himself. If he is very clever, he could then imagine that the system sounds as good as it looks. :)

Twl, you could have saved us all this time if you'd just posted earlier. I hear that plastic clips softly, and produces mainly even-order harmonics. And the slate-blue color option is currently "in", fits nicely into period homes, etc. The classic white and piano black fit well in a modern urban setting.

I love it. Seriously, cheap + quick is a hard order to fill in hi-end, so I hope all the help you provide isn't dismissed quickly and cheaply as well. I've been there before.

Acoustic Energy Aegis One speakers (or whatever the latest gen of this speaker is called), inexpensive wooden speaker stands (like Sanus, you can find them by doing a Yahoo shopping search), 12 gauge speaker cable from Hoem Depot or Radio Shack, or any electronics store. And, drive the speakers with a combo minisystem like the Yamaha mentioned above by DK, or my favorite, the TEAC Ref 100 or Costco equivalent (store the little speakers that come with the minisystem in case he wants to give the system away later). $600-800.

I have hooked up the little TEAC to an old pair of Monitor Audio MD300's in my father-in-law's house, and it's very enjoyable. Depth, width, nice imaging - just lacks a little detail, which isnt always bad.

Nothing unreasonable about your cheap friend's request.