A guy i work with says his firewire 800 drive is actually faster than his internal hard drive lol.
The only way in which a FW 800 drive can be faster than an internal is if the internal is using a slower PATA connection than the external drive's PATA or SATA-FW 800 bridge. Otherwise, the internal drive must be more full than the external or have something wrong with it to be slower than an external drive (assuming that both drives are in the 3.5" form factor).
In a situation with two brand new drives of the same model, the external drive can only have the same maximum speed as the internal drive. This is due to the fact that there is no such thing as a FW 800 drive, only PATA and SATA drives. All external drives are are internal PATA or SATA drives connected to a PATA/SATA-FW 800 bridge. The only possible scenario where the external drive could be faster is if the external drive is a SATA drive, while the internal drive is a PATA drive. This would be highly unlikely, though, as the FW 800 conversion would take a small chunk out of performance.
It's highly likely that your coworker is either lying, or he doesn't know how to properly conduct speed testing.