Its not Vista and while the "upgrading" joke is sort of funny its ultimately silly. People were "upgrading" to Windows 98 years back when XP came out. Short term memories.
HyperLobby works fine but it needs to run as administrator. It'll be nice when its brought up to spec to not need administrative priviledges to work. Note: This isn't a Vista snafu...its the software...it doesn't really need to be administrator to work but since old versions of Windows always did
TeamSpeak runs fine. Need to know why it doesn't work to help you. Make sure you get the very latest version.
With the no CD thing it makes no difference if its Vista or anything else...its an EXE replacement.
What joystick does he have? Updated drivers are key once again...
Vista is not a problem...old software is. Most of the negative press is undeserved or at best exactly the same as with XP when it came out. With the same issues. Its really quite funny