Okay, let me get this straight. In the American Civi War, the North was called the Union, the Yankees, or the Rebels, and the South was called the Confederate or the federals?

Not quite.

North = Union, Yankees, federals

South = Confederates, rebels

I thought the conFEDERAtes would go with the FEDERAls, lol.

Thanks!

Nope! They considered themselves members of the Confederate States of America, as the states which seceded called themselves.
See: http://www.answers.com/confederacy

=)