Regardless...
stereo or full fledge 7.1 surround...
I'd recommend getting the 1070 with a decent pair of speakers and building from there as more budget became available....
but ... can your friend be patient ?
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Outlaw 1070-Mirage M-290(main)+MCC(center)+Omnisat Micro(sides) nanosat(back)+ +PS12-90(sub)-Technics SL-5 turtable+Cambridge Audio 540P-HTPC - SamsungDTB-H260F HDTV tuner - Optoma HD 20 +100' Draper screen -lots of spaghetti and toys