Me and my friend are using the same IP address however we are getting no error message of IP conflict. How is it working. We are receiving the data that we requested for and so how is this possible?
When you clone the MAC address you are likely to be assigned the same IP address. As you both have the same MAC address, there is no conflict in the ARP tables as you both answer with the same MAC address.
IP is quiet resilient to conditions like this. If you both browse the same site you may run into problems. It is also possible for your stack to close connections made by his stack of vice versa. Closing connections for the other computer can be nasty, but may not be completed before you have gotten the data you were looking for.
Even without cloned MAC addresses, both computers could be quite functional. Without appropriate ARP data it can be quite difficult to detect the problem.