How much do I charge to design a co-worker's website for a starter business?

Question

I'm not a web-designer - I'm an architect (or will be). But I got into graphic design a little, and just recently web-design. To be honest, it all seems to be coming naturally, and I just finished recreating the company-site of the place I work, and my own portfolio-site...
Now - a coworker wants a website for a small business he's starting up. I want to help him, but don't have the time to volunteer my services. And neither of us wants to throw out a price offer, because we don't want to offend one another..
So what's reasonable? We're both fresh out of school with a mountain of student loans each - I need money, and he has little to spend.
1) do I charge hourly or as a flat-price?
2) how much is reasonable for: a simple 5-page (or so) design, with a flash intro, custom-animated flash buttons (as links), a slideshow, built-in contact page, and some photoshop work? Keep in mind - I'm still kind of new to all this, so it'll take me some time..
Anyways, thanks for any advice!

Answer 1

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        ALWAYS charge by the hour, but give a reasonable estimate.
Interesting how different business models operate. I would say NEVER charge by the hour to quote for a project. No client wants that pricing upfront. It's OK for extras but as an initial quote it's the fastest way not to win work.
Always get a full, accurate scope of work and give a per project price.
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And as for doing jobs for friends, family or colleges, that's called networking, which is the primary way that independent contractors get business.
No-one said networking is bad. It's great, if you know what you're doing, what your time is worth, what you're capable of delivering, what the project entails and manage your clients well.
Working as a favour for friends and colleagues on a shoestring budget with no clear scope of work and a limited skillset is bad. That's what loses you friends.
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So to those of you who have been advising the poster not to take work from someone they know, what kind of slash-and-burn business tactics are you practicing?
Not sure how you arrive at such a ridiculous conclusion from this thread but see comments above.
To reiterate:
Networking is great - if you know what you're doing, what your time is worth, what the project entails and manage your clients well.
Working as a favour for friends and colleagues on a shoestring budget with no clear scope of work and a limited skillset is bad. That's what loses you friends.