Chimps said:
...
I was talking to a physicist who is convinced that there was no big bang and that in fact we are living in a 'big bounce' ...
Twofish provided a clear carefully worded response. I couldn't say it better.
The bounce idea is getting a lot of attention. Computer modeling. Analytic modeling by equations. Different models and assumptions leading often to the same conclusion.
But the models have to be tested---they have to derive details from them that the models predict will be observed and then go look for them in the data. That's going to be hard.
Read twofish's post carefully---he doesn't say we have answers yet.
Most of the bounce work is not coming out of string theory. Nowadays you scarcely ever hear of string in this context. But who knows what your physicist was really talking about?
There may be a new bounce scenario brewing in the string community as well. The old string bounce scenario associated with the name Veneziano and "pre-big-bang" is something you don't hear about much. The papers were from before 2002 or 2003. It pretty much dropped out of sight. There is however a string theorist named Horava who has developed a non-string quantum gravity approach people call "Horava gravity". It has no strings and no extra dimensions---just 4D. Horava gravity is one of several non-string approaches that predict a bounce.
So it's hard to say what the connection with string could be. But the research topic is hot. If you want an overview here is a listing of some 400 "quantum cosmology" papers that have appeared in 2006-2010, in order of the number of citations. The most frequently cited papers listed first. Almost all the first 100 or so papers are about early universe models where there is a bounce.
http://www.slac.stanford.edu/spires/find/hep/www?rawcmd=dk+quantum+cosmology+and+date%3E2005&FORMAT=WWW&SEQUENCE=citecount%28d%29
These are not papers I'm suggesting you read!

Just scan the list of titles to get an idea of what's going on in early universe cosmology. If you see the word "Loop" it's probably a paper using the Loop Quantum Cosmology approach that twofish mentioned in his post, one of those where the singularity is replaced by a bounce.