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I'd say it totally depends on your relationship with the guy and how much you trust him. Since you said he's a friend, and you think he's a safe enough surfer, I'd go for it. There are some bad worst case scenarios, but I wouldn't hesitate to do it with any of my friends if they wanted.
I would keep your own stuff firewalled independently of the wireless router, because even if he's trustworthy, he might get infected with something, have his box 0wn3d, then you've potentially got malevolent 3rd parties on your side of the router.
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