I'll have to check tomorrow as it's late now and he's out of town. But hypothetically speaking, if Add-on isn't popping up like it was on my console what could be the problem? I don't think using the HDD on different consoles could be the issue could it?
That is exactly the problem. Using someone elses HDD in your system means that its YOUR xbox's hardware code that is attached to both the xbox live account and the DLC. Never put someone elses HDD in your system, you can royaly frak up their xbox when the HDD is re-attached, especially if they dont have xbox live to get the dashboard updates required for some content. Hard drives are not unique so when content is downloaded the LIVE system uses the actual xbox's hardware code to register ownership and ignores any on the HDD.
What your pal will have to do is a licence transfer to authenticate the game for HIS xbox, not yours.
http://support.xbox.com/en-GB/xbox-live/marketplace-and-purchasing/download-content