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You'll need a HDMI to DVI-I cable to enjoy the best possible picture and that you can get from Blue Jeans Cable.com.
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He probably needs HDMI->DVD-D cable; DVI-I doesn't fit a lot of older HDTVs. I'd get it from monoprice, cheaper than Blue Jeans.
But he can just use component for HD-DVDs if he doesn't care about scaling DVDs, see below.
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I'm in the market now for the some HD-DVD titles to enjoy some HD but the biggest thing at this point is the upscaling of standard DVDs to 1080i. You will get the most out of your t.v. this way.
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Not necessarily. It depends on how well the player scales compared to the TV itself. Also on the Wega LCDs, 720p native, if using an upscaling player then scaling to 720p would be more sensible than to 1080i.