If your friend has gone that much over budget it means he doesn't know what he is doing unless you have been changing the spec significantly as he has been working on it.

Designing a photography website has been done to death over the years and there are thousands of off the shelf solutions to be had for very reasonable prices of only a few hundred dollars. But if you don't want to worry about organising your own hosting then I would recommend the following who will have you a site up and running in no time at very good prices.

http://www.clikpic.com/index.cfm?section=prices