You cannot just plug in infinity and zero into certain equations like y = 1/x and then expect it to obey the 'normal rules'. For a start, infinity isn't a member of the Real numbers, it's a member of the extended Reals.
When you're doing this kind of thing you need to instead use 'limits'. Rather than just put in x=infinity, you consider what happens when x gets really big (or sometimes when x gets really small).
For instance, what is [tex]y = \frac{3x+4}{x-2}[/tex] at x=infinity? If you just wack in x=infinty you might give the naive answer y=1. However, that would be wrong. With some thought you can do the following
[tex]y = \frac{3x+4}{x-2} = \frac{3+\frac{4}{x}}{1-\frac{2}{x}}[/tex]
Now as x-> infinity, the 4/x and 2/x parts go to zero and you end up with y=3.
Because of this requirement to 'approach infinity' rather than just put in infinity, you can't say things like 1/0 = infinity means 1 = 0*infinity. I could just double each side to get 2 = 0*infinity, so that means 1=2. Clearly this is wrong and is a sign you've assumed you can do a certain operation you shouldn't.
It is true that in the limit as x->0, 1/x goes to infinity, but I'd be extremely weary of putting equals signs there without mentioning limits or you'll end up proving 1=2.
What exactly do your friends think the value of 1/infinity is anyway? By using limits (so it's rigorous) you can show that if they think it's any number other than zero, they are wrong. For instance, suppose they think it's k, where k is really really small.
So you've y = k on the y=1/x line. Just pick x to be bigger than 2/k, and you'll see that the limit is less than their guess, so they are wrong.