You might want to check with the school to see what they recommend for his intended major. Subjects like engineering often need a little more in the cpu department than an english major if you know what I mean. I would also get hin the 7670 gpu, for $50 is a decent buy and might spare him from a completely boring weekend at some point.
You definitely want to get the accidental damage warranty though over the standard.
Thanks Popatim and All,
I did contact the school the other day. He planning on BioMed Eng. We have a friend in the 3rd yr of the same program who is using a Samsung w/2nd gen i5 with a Gforce 310m and he is doing fine with that. He said they have done some very light CAD and NX. I read somewhere on one of the forms I visited that the HD-4000 is a bit better than the 310m so I started leaning towards the i5-3210m for the processing power.