Hi Jim

I think your buddies are applying a correct rule to the wrong situation

say we have a 3 handed game

Player 1 has 12000

Player 2 has 7000

Player 3 has 18000

Player 1 opens the betting and raises to 5000

Player 2 goes all in for 7000

Player 3 calls the 7000 bet

Player 1 CANNOT now re-raise all in to attempt to force player 3 out of the pot as player 2's all in was not a legal raise it is termed as a call and player 1 as the raiser in this round of betting cannot re-raise his own bet.

However if player 3 wanted to go all in after player 2 to protect a hand and attempt to force player 1 out of the pot he can as he is yet to act in this round of betting.

Regards

Andy