I'm really confused about the whole "she's working with her vet thing." Like...her vet is going to be running tests on potential sires and dams? An OFA certificate won't be enough for her? She sounds like someone that would be really fun to sell a puppy to...
$800-$1000 is very possible. Really excellent working lines run somewhere from $1200 to $2000 but she can get a good pedigree for about $1000 as well. I think what you need to remind your friend is that a high price/good breeding practice doesn't always guarantee a healthy dog. It helps...but its no guarantee. If she's really willing to put in the time, I'd tell her to join a GSD club or a Schutzhund club and hang out there on the weekends. Talk to people, become close with some breeders, and really get information on their past puppies. Really get to know their history and then make her decision.
CD RE TC HIC 7/10