I have to ask: if me and my friends want to play the game, if we want to be on the same team, do we have to chose the races that are from the same alliance? lets say i choose Breton nightblade, my friend redguard dragonknight, and our 3rd friend can't choose altmer,nord, or any race that isn't in the pact that we want to play? i guess that is so, becouse it would be odd to see an altmer, an breton, and an argonian in the same team.

Yes that is so. You are race-locked into factions.

Why would it be odd though? It would be very lore-friendly actually. Tamriel has been well-integrated since the first era.

All of you will have to be in the same faction if you want to play together.