I generally dislike electronic drums. They should really only be used where space or noise is an issue. Also, you do not get a realistic representation of acoustic drums with v-drums. You get way more rebound with a v-kit, and it makes for a tougher time later on when you are trying to play blast beats, do fast db, or whatever on an acoustic. Also, it's good to get experience tuning real drums.
That being said, a lot of cheap kits can be had in the $499-$599 that are pretty decent. Check out brands like PDP (or Pacific), Taye, Gretsch (that 699 maple set sounds killer), maybe a few pearl kits. I personally would avoid like the plague any low end ludwig, tama, or "pulse" kits. Also, the $299 ebay deals tend to suck... You can, though, find a ton of decent used intermediate kits for entry level prices. I got a Pacific MX kit with a bunch of extra hardware, three cymbals, a ton of new heads, and a single pedal for just over 600.
Of course, this all depends on what your friend's dedication is like. If he wants to seriously consider drums, and will likely play them for a long time, I would say spend a little extra upfront to get a nice kit. If he just wants to mess around, and learn (but not record or gig with) the drums, then any cheap kit will do.
Hope that helps!