I added a second 2.4GHz Xeon processor to my 1600SC. The P4 generation 1600's do not need a VRM added. Also, the added processor was a retail processor. HOWEVER, the retail fan/heatsink will not work. (They just don't fit.) For that you will need to go to dell. Don't quote me, but I think the heatsink/fan & two clips cost about $30. After that, the BIOS saw and added the second processor with no problems. What speed is the processor in your friend's 1600?
Also, if you have an OS already installed, you may have to make it SMP aware. (I was runing XP Pro and I had to do this via the system hardware info in control panel, but I don't recall exactly what I did at the moment.)
If you have any specific problems/questions, you can PM, but overall it is an easy process.