well in general... "pops" in electronics can mean a blown capacitor. You might want to look over the motherboard and make sure everything looks ok. Look for dark burned spots, something not sitting right, or a completely blown apart piece heh.
Was there smoke when it popped? It could be a number of things, and I'd say the best way to test it is to put one part at a time into another system, assuming your friend has that ability. In my personal experiences, this stuff usually stems from a bad/faulty power supply. If it IS the PSU however, there is always the chance that when it shorted/dropped/spiked/whatever, it took along some other pieces of the computer. I've seen mobos and CPUs get damaged by a bad PSU.
I would swap in a new PSU first. See if the system will boot. If it does, run tests to make sure everything else is running ok. Look for hangs, run burn in tests, stress the CPU/video card/etc to see if they will break. After that, you'd want to start swapping parts if the PSU didn't fix it.