Viv,
Yes, I did take all my pre-med coursework with the letter grade option. All of the lower and upper-division courses in the sciences at UCSC allow you to take the letter grade. They've changed things at the school since I've been there, they now have a GPA system and give you grades whether or not you want narrative evaluations. Back in the hippie days (when the school was established) I think not having grades was okay but it is ludicrous for law/medical students not to have a GPA. Luckily I visited the pre-med advisor at UCSC very early on in my career and she suggested all pre-meds to take grades. That sucked for your friend, he probably had good grades to begin with but it is hard for the med schools to decide whether a "good" is an A, B, or even C.
EDGAR