A buddy of mine pointed out how all of the handicap rankings on the front nine are odd numbers, and ratings on the back are even....how does this work out and what is the reasoning for it?

Logic tells me it is just to make it fair and equitable...As an example, what if one was playing a match against a 10 handicap and 8 of the 10 "toughest" holes were on the front nine?..You'd get smoked...This assures that strokes will be evenly distributed...Anyone feel free to correct me if I'm wrong...

It's to even out the number of strokes per side when playing in a match.

From the USGA Handicapping Manual:

"The USGA recommends that the odd-numbered strokes be assigned to the holes on the first nine and the even-numbered strokes to the holes on the second nine. This format equalizes, as nearly as possible, the distribution of handicap strokes over the entire 18 holes, and makes matches more equitable. In a case where the second nine is decidedly more difficult than the first nine, consideration should be given to allocating odd-numbered strokes to the second nine."

See the following for more detail:
http://www.usga.org/playing/handicaps/manual/nav_index.html

Splitting odd and even also allows nine holes matches (so that a player receives half of his strokes, no matter which nine he plays).

WW

Close but technically no. What happens if you have an odd numbered handicap. Eg say you play off 7. Your either getting 3 or if its the other nine you could get 4

I've played where you get 3 1/2 strokes. On the 4th handicap hole, the higher handicap player wins ties, but doesn't tie the hole if he loses it by 1.