What kind of source material does your friend normally watch? More movies, or mostly TV? Is he interested in moving up to HDTV anytime soon?
In that price range, I'd look at a small 16:9 RPTV, but Crutchfield has poor selection. The 16:9 would be great for movies and HDTV (but then there's the added cost of a tuner...), but if you mostly watch standard definition TV in 4:3 aspect, it might be a waste.
How big is the room? How far away from the TV is the couch/chair/etc?
You might get a more interesting response posting this on
Home Theater Forum display devices forum.
It's too bad the GC is for Crutchfield, and not someone like OneCall.