Is spoonfeeding this friend through AIM/ICQ/MSN or whatever you choose to use to communicate with him. This way, you don't have to perma with the friend and he(English 3rd person pronouns suck when you're trying to speak of any person in general. So I'll use he, independent of the persons sex) can get your help, and yet has to accomplish things himself.

Group with him if you like(but make sure that everything related to arranging the group is done IC), but only after he has completed newbie quests(Simon's quest, fine leather gear quest in Academy) and explored his hometown on his own.