So I have a friend that is moving to Pennsylvania from another state. The potential landlord has a place for rent at $675 per month. When my friend called about the place she wants $1,675.00 up front ($1,000 for deposit plus first month). I don't think she can ask that but need to know.

It is usually first and last months rent when you move in, that is a tad more then that. How bad does your friend need it ? It is a security deposit against any damage done when occupant moves out.

Yes, in fact, up to 1350 would be allowed.
Pennsylvania Security Deposit Law (http://landlords.about.com/od/LegalIssues/a/Pennsylvania-Security-Deposit-Law.htm)