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If he never had a PS2 then it's even more reason to get the 80 gig.  Pick up a handful of great PS2 games for $50 while you are waiting for the good PS3 games to get a price drop. 

I'd suggest the 80 gig still.  If he wants MGS4 it means the 80 gig is only $40 more.  If he doesn't he can sell it on ebay for $40 and the 80 gig is only $60 more.  For that you get.

4 USB ports.  If you plan on getting rock band/guitar hero, this is big because it lets you use all 4 instruments at one time versus buying a USB hub ($10) and plugging it into that.

40 gig seems like a lot but it's not.  If you get MGS4 and Devil May Cry 4, they each have a mandatory 5 gig install.  So that is 10 gig right there.  After the operating system, you'll have something like 33 gig left.  Oh GTA 4 has a mandatory install as well.  So even if you don't plan on downloading alot, if you have 6 games that require 5 gig installs, you are out of memory. 

Even if your a Nintendo or Microsoft fanboy, you really should have PS2.  There are so many great games for it.  And they cost $130 now and don't have wireless controllers included.  So it's really a bargain to get the 80 gig.