For that budget, I always recommend either a good pair of binoculars (does he have some? if not, definitely go this route!), or the
Edmund Scientific Astroscan. The astroscan is about the cheapest, not-crappy telescope there is. Whatever you do, don't buy a "department store telescope" that is sold by how much magnification it has. They are not worth it.
You might want to check out the
Cloudy Nights reviews and forum as well. This question has been asked many times there, and there should be plenty of answers. Also, on the webpage that this blog is attached to, Bad Astronomy, there is a
FAQ about buying a telescope that might help you.
But, as I said above, a good pair of binoculars (probably 7x35 or 8x50: that debate rages ever on...) are definitely the top choice, if he doesn't yet have any. They can be used for bird watching and other things, and are the quickest way to learn one's way around the sky, which is important before moving on to more expensive telescope.