Hippy
Explorer
There's a lot of good advice in this thread, but there's a lot of bad advice too, imho.
Bad advice includes anything that lets Fred keep spoiling the rest of the group's fun; any of the "talk to him and see what happens" stuff- it's already been tried, both by you and the dm. Someone suggested that you suggest a different game to mollify him- why should everyone else in the group have to give up a game they're enjoying to placate a guy who is ruining the fun for everyone?
I guess I was not clear when I suggested a different game. I meant it a break from what was becoming un-fun for everyone involved. A temporary deversion from the rut they are in with this guy. Maybe one session or a diffferent day if they do not want to give up the game night they have already. I was not suggesting they abandon the game for this guy, just take a break and let things simmer down. Then talk to this guy and see if he is having fun and if not why? If his style of play does not match the rest of the group, then it is time to part company in this game. Note I am talking about this game not the friendship which they do not want to lose.
I do stand by my earlier statement however that if he is not being respectful of the rest of group's feelings about the game then he is not being much of a friend in the first place. Since none of us posters here (besides your group dm and you) know what he is really like, only you can make the call on his behavior as a friend.
Again I wish these guys the best of luck. These kinds of problems are never easy to deal with, when you care about hurting feelings.
Hippy