None of this is really relevant. I don't think there are any driver issues here at all.
when i got the new video card all i did was just plug it in. I never installed any drivers or anything. I bought a new computer game and went to play it and its not working so I had my friend take a look at my comp to see why and he said that my computer is saying that I have a nvidia Geforce video card and not the radeon 9800 from ATI.
When you installed the new card, XP recognized the 9800 and used the built in drivers; you didn't need to install them. Either that, or it used the very generic drivers (which means you hadn't played any games other then this "new" game).
Secondly, the game probably didn't run because, as you said, it was a
new computer game. The 9800 Pro is quite a few generations behind, so the new game probably refuses to run with it.
Third, your friend is clearly not familiar with On-board video configurations, and is throwing out reasons that don't make a whole lot of sense.
To confirm this, visit Device Manager (Start->Run devmgmt.msc) and see what is listed in the "Display Adapters" Tab.