I have had a chat with my colleague regarding Sage. He is using the "Accounts Pro 2009" version.
There is an annual fee that covers bug fixes and allows questions to be asked on the help-line. It does NOT cover software updates - these are chargeable. You do need to have an "accountant's mind" and know about accountancy methods and terminology to get the best out of it.
His suggestion for a user-friendly package is "Microsoft Small Business Accounts", released this summer.
Sage allows on-line VAT and other HMRC services; "Small Business Accounts" does not.
The on line stuff is, I think, not so much of an issue: my spreadsheets do VAT calculations and when I file VAT returns on-line, I simply copy and paste my results into the VAT return form. It's no harder to do than a written VAT return.