tell your friend to implement a proxy server with application intelligence and point the browser to that proxy. it will strip out all malicious content. this will also break most homebanking sites so they will need to be added to the proxy's whitelist.
do not run windows with local admin id
change the internet explorer internet security settings to block everything for everyday browsing, and only place trusted sites urls in the "trusted sites" list. make sure to click on custom level and disable everything for the internet zone. if your friend needs to get homebanking site, put that url in the trusted sites zone. disable everything in the local intranet and restricted sites zones as well.
change the IE privacy setting in IE to block all 3rd party cookies and prompt all first party cookies. trusted sites like homebanking can be added to the always allow, all other sites should always block. also, turn pop-up blocker to hign and again only allow trusted sites for popups.
change the IE advanced section to disable all install on demand apps. do not enable 3rd party browser extensions. do not save encrypted pages to disk. empty temporary internet file folder when browser is closed.
change autocomplete to web addresses only. do not store form info or any passwords
make sure your friend has anti-virus and anti-spyware installed
make sure the host file is read only and check to make sure it isn't already compromised and re-routing your friend to malicious sites.
make sure your friend has a software based firewall installed and again, only whitelist trusted sites and block all others.
make sure to turn on data execution prevention (DEP) and allow no exceptions.
all the above should be applied immediately after a fresh xp install and before the ethernet cable is even connected to the network. once the above has been applied, connect the ethernet cable and immediate proceed to windows update and install all critical updates.
now your friends computer should be ready for internet use. all of this is very inconvenient and requires lots of training and practice. but once this becomes a habit for your friend, you can be assured that virtually no virus, spyware, or any data loss will ever happen again.
hope this helps.