I know ATI makes some pretty good gaming cards

But looking at GPU features and hardware most would think that this should be able to wipe the floor with any nvidia card but alot of the times they don't for example.

The HD 4850 has 800 stream processors clocked at 625mhz
The 9800GTX+ has 128 stream processors and clocked at 740mhz and performs a tad bit better.

So im not understanding this can somebody explain what makes nvidia cards faster if ATI is boasting better hardware O_o

Different uArchs. Basically they're completely different breeds. Also check the prices--RV770 is pretty cheap compared to G92b or GT200.

Architecture is different from both companies, they go with what works for them I suppose you could say