In video poker (or poker), cards that "don't reach" cannot be held to make a straight or straight flush. For example, with a hand like 2h,5c,6d,7d,9h, the 2 can be discarded for a chance at the inside straight. Playing most video poker schedules, you're better off drawing five new cards than keeping the inside straight draw, but not always. For example, when playing 10/7 Double Bonus, it's proper to keep an inside straight over drawing five. So with 2h,5c,6d,7d,9h, holding 5c,6d,7d,9h is the right play. However, if the 9h were a Th and you kept 5c,6d,7d,Th, a knowledgeable player might comment that "the cards don't reach," or possibly, "the ten doesn't reach" in criticizing your play. He's saying that there are two gaps between the 7 and the T with only one card to come, so you can't complete the straight.
Here's another example. Playing a Jacks or Better (JoB) schedule, it's correct to hold any 4-card straight flush over a high pair. So if you're dealt something like 7d,8d,9d,Qd,Qh, you could properly hold the pair of queens while commenting, "I held the high pair because the straight flush doesn't reach" and sound like a VP stud.
In video poker, knowing whether you even need to consider whether cards reach depends on the pay schedule of the game you're playing. And when it is important, you have to learn when. The two great products that will set you right in this pursuit are Bob Dancer's video poker strategy cards and his Video Poker for Winners software.
And regarding not asking your friend, unfortunately, the fact that he uses the term probably means that it doesn’t matter that you didn’t ask him what it meant, since it was already obvious to him by your play that you didn’t know.