Really paying for CDBaby to put out a digital release is probably the best option. They will put it up on iTunes and everywhere else all in one go. It really doesn't cost that much (last I checked it was around $12 a tune and $50 for an album). That gets it pretty much everywhere on the internet, they collect the money and send the artist a check.
They really should sign up for Socan still though. It's free for artists ($50 for publishers) and they can do it online now so it's no big deal. They don't deal with copyright but they will collect royalties in all participating countries and, to me, having a song registered with them would be pretty good proof in court of ownership even if they don't shell out the ridiculous copyright fees (of course all intellectual is automatically copyrighted... you just gotta prove it in court if a dispute occurs).
As far as the traditional songs... well the Socan cats may be able to help figure out what's allowable and what isn't and if it's their own arrangement of an old standard they may be able to copyright/collect royalities on that.
You probably know much of that anyway but that's kind of how I'd go about it. There is also the songwriter's guild and similar orgs that are better for the copyright stuff.
As far as making money? lulz... It ain't impossible but without being able to hock the stuff from a stage that's a rough go. That's why CDBaby is kind of cool because it's full saturation. If it's really good and their lucky then who knows. Seems to me you gotta have your own fan base already or be connected with a label/promo company to really have a good shot but without gigging that's all a pretty hard sell.
One thing maybe would be to set up a website and try to sell the tunes directly either to individuals or to tv/film folks. They'd REALLY need to get some royalty collection agency on their side for film stuff.
Cheers and best of luck to the dude.
PS: I just remembered... since you are in Canada they could use the tunes to maybe get some kind of arts grant from the the gov. The grants are all kind of weird and obscure but they may be able to fit into one of those square pegs. If they are aborginal... well lots of funding for native artists. They also have weird multimedia, cross genre/artform/modern tech style grants. So like if they play their songs while painting a picture with a bruch hanging out their butt in front of a backdrop of a film of seagulls eating cigarette butts at the beach while hosting a live webcast to Antartica they might get a bunch of money.... or something like that.
lol... your tax dollars at work.