Daveking,

After the situation you just posed black would, indeed, have an equal or better position than white, but that's the problem. Black was going to take material and now c6 gives white a chance to equalize.

I would still play c6,if bishop takes knight,rook takes bishop with a good game,and no lost pawns.

I think both of you are not seeing the problem with c6. This move will allow white to take the knight on b8. After that, black could play cxb5 (taking white's light squared bishop) but then white could play Qxb5!, which would lead to the loss of another queenside pawn and lack of development.

Think about it some more.

c6 is your best chance, since:

1...Bd7 2. Bxd7+ (2...Qd7 3. Be5! Rg8 4. g4) 2...Nd7 3. Be5! Rg8 4. g4 and black has no practical advantage despite having used the exchange to develop.

But c6 is good because: 1...c6 2. Bxc6? Nxc6! threatening the queen and white loses the dark-squared vbishop anyway or even: 1...c6 (2. Be4 Rg8 3. Ba4 f6 wins material) 2. Be4 Rg8 3. g4 cxb5! 4. Qxb5+ Nc6 and black is still looking good (or better)

I would play c6.