I don't like the sound of this. I'm sure that your friend has spoken to the school about why she wants her son moved and they should treat bullying more seriously. If I were your friend I'd go back and ask them what their anti-bullying policy is. If they don't have one then perhaps she could create a stink until they do. Also she could contact the charity Kidscape which has loads of advice for schools, parents and children about how to deal with bullying.
As for settling in, I think it just takes time. I hope that things work out for him, it's a miserable situation.