Okay, I went back and talked to the guy who owned the rifle before my buddy got a hold of it.
He said the last time he used it someone shot it for him in a rifle evaluator and it shot fine. The guy is pretty sure he was shooting 100gr. bullets, which is the same weight my buddy is shooting. He is not certain on that, but said he still had some bullets at his house that he was shooting back then and he would double check. He said he was not certain on the distance they shot, but thought it was at least 50 yards.
One thing he did tell me that was kind of odd was that he had used the rifle and shot it and then put it up in a closet for storage without cleaning it. The rifle sat in the closet for years without having a proper cleaning for storage and my buddy bought it several years later. He has not cleaned the rifle either...he just brought it to the range and started shooting...that's when it put up the bad groups.
I'm wondering if it's possible that him not cleaning it, storing it for many years, and then my buddy getting it has something to do with the inaccuracy. I don't know anyone that would store a rifle for over 4 years without giving it a proper cleaning and oiling first.
I know the cleaning thing is a long shot, but it's about all I can come up with...my buddy still is thinking it's the wind, but I don't buy it after looking at various ballisitc charts. I know it's something, but can't pin what it is.