Under that budget, it's best to go with an FX 6300 or something, so you can have money left for a better graphics card. i5s aren't worth it until your budget is above ~$1100 and you can get an unlocked one.
Thanks, your build looks much better. I've never had a very open mind for AMD processors, but if that's a better option then I'll go with it!
Also, what would you change if it turned out he didn't need an OS?