Okay, here is the original classic on DVD (1977):
http://www.amazon.com/exec/obidos/ASIN/6305501092/badmoviesorgHere is the remake (1993):
http://www.amazon.com/exec/obidos/ASIN/B00000INCO/badmoviesorgHere is the sequel to the remake (1996):
http://www.amazon.com/exec/obidos/ASIN/6305885141/badmoviesorgNames get traded around pretty freely. Your friend might be thinking that "Iron Monkey Strikes Back" (1977) was a sequel to the original. I've not seen it, but a friend who is an expert on these sort of movies has and said that it was a sequel in name only.
DISCLAIMER: ALL THOSE LINKS GENERATE REVENUE FOR ME IF YOU BUY THE MOVIE.
Andrew