As a guitar player with some key knowledge, I know that as he gets older and more proficient at the keyboard, he'll wish he had taken lessons. Man do I ever. I also had school band, therory etc but piano lessons are invaluable no matter what you play, even for voice coaching.

As far as the keyboard, in the 500 range you are not going to find much I don't think. You're gonna have to go to a dealer and explore options as far as weighted keys, 76 or 88 keys and realistic piano sounds. You might get one or the other, but not all three for 500......sorry.

I love yamaha stuff, you might find a nice used one or a roland digital piano in the price range. Don't cheap out it will cost you more in the long run.

Rob