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Unless you're going to be going into log milling very heavily, a 660 might be a better choice for your budget. It won't have the excess power like the 880 but it's a much easier saw to use and much less expensive to run. And the bar mount is identical to all the other Stihl saws from the 260 on...

I own an 880 and it is not interchangeable with a 362. It is much too heavy to use for anything but the biggest cuts where no other saw will work. I wouldn't lose the 362 because it is a great midsize saw and will handle almost everything in between the little trim saw and the big milling...

The positive side to using that small of a saw for milling is that he will get very good at filing his chain razor sharp! :D