I've been using Turbo Tax on-line for about 8 years now. Before that I went to H&R - I've always been afraid to do my own. I've been really happy with Turbo. It guides you through each step and tells you what's going on, unlike H&R. If you've got everything you need, then all you need is Turbo Tax and you are done. Get it on-line, though, don't go buy it from a store.
There are other brands, I imagine they are all variations on a theme and equally good, Turbo is just what I've used and I've always been happy with it.
I assume your friend meant free as far as the gov't was concerned, most of the companies like turbo charge you for their product. Turbo claims to have a free version, but I think that's only if you have very very basic tax reporting needs. IMHO, the $35 is worth the piece of mind to me.