I think you can make him an iTunes account on your computer, use it to set up the iPad, then help him get itunes and that account on his own computer so he can sync.
I'm not sure about the paying and credit card part of it. When I se up my itunes account i could use an iTunes gift card and not a credit card. I wonder if you can do the same? Or, if it insists upon a credit card, use yours long enough to set it up, get a $10 iTunes card and take your CC off and put that gift card on in its place. ( I've never had to do that so I'm not quite sure about how it'd work)
The other bug in this, either you make him a new e-mail (like a yahoo or gmail or something) account so he doesn't get e-mails about a gift he doesn't know he's getting, or you spill the beans early. You can always make him a disposable account for the setup and then make changing that info be part of the whole 'in person' set up.