If he wants a warranty, new, and after sales service (especially bike fit which is, IMHO, mandatory), he should look at his local bike shop (LBS) for a 2004 model on special as the 2005 models come out. In NZ we have the 2005 Specialized already, for instance.
For $750 he might find a Shimano 105 (or better) equipped bike, alloy frame, carbon fork. Certainly for $1000. Pedals and shoes (also mandatory IMO) are more $$$. For example, Specialized Allez Elite is MSRP of $1000 and is (i'm told) a good bike for the $$$. It comes in a double front chain ring or a triple (helps if it is hilly and/or if he is, um, "bigger").
Alloy isn't especially comfortable, but $50 of carbon seat post can help that.
He can buy my 2001 Giant TCR2 for about $750
, because I'm getting a new bike
(tonight - practically new Specialized Roubaix - hence I'm keen on Specialized's today).