Ok everybody I have a theory regarding the battle between Madara and the 1st. Madara told Sasuke about the battle an all, and the reason behind the battle was to control Konoha. First of, I think that is a cover up, that is not the reason why they fought, and poor Sasuke have no ability to verify the truth.
As we all remember the first have the ability to control/contain the bijuu's, the first Hokage wanted to capture the bijuu's in order to give them to the different villages in order to protect and spread power between the villages, he already acquired 8 and still was in need of the 9tails. I believe that Madara have taken notice of the potential of obtaining all 9 the bijuu's and wanted to prevent the 1st from acquiring everyone. I think Madara didnt trust the Shodaime and was afraid that he might want to use them for his own purpose, if he had obtain all the bijuus he would have been to strong for anyone. Madara wanted to prevent Shodaime from acquiring the 9tails aswell, Madara have the ability to control the 9tails.
In the battle between Madara and Shodaime Madara wanted to protect the 9tails from Shodaime and Shodaime wanted the 9tails to distribute. That is why they fought. After Madara lost, he sealed/locked /warped/ whatever he have done to hide the 9tails from Shodaime.
Madara went into exile and waited until Shodaime passed away. Madara saw the potential in the 1st plan of acquiring the Bijuu's and tried to do the same. THAT is when the attack of the 9tails took place on Konoha, it was Madara who summoned the 9tails again and attacked Konoha in order to get hold of the other bijuu's, Unfortunately he wasnt aware that the 4th had the ability to seal the Kuuybi.
After the battle took place and the the fourth sealed the bijuu. Did the Elders realize what REALLY happened. That keeping all the bijuu's at one village would be disastrous and would cause constant battle between them and other villages. Only then did they distribute the Bijuu's between the different villiages to spread the possibility of someone like Madara to acquire all the bijuu's with one shot .
Now Madara became the Mizukage in order to take control of the Bijuu that was handed over to the village. He later began a secret evil organization called Akatsuki to gather the other Bijuu's under the radar, if you know what i mean, and here we are today with the current progress of Naruto.
So tell me what you think? I really think that this is actual reason for what happened in the Narutoverse.