Defense!!??

What are some good defenses for the King's Gambit? Is there a declined? And aslo, how do you play it well with white?

I usually end up moving knight to c6 and playing away from my d*mned pawn.. Like this.

That's a big question! :-)  Anyways, the King's Gambit Declined looks like this:

  Black's idea is to get the dark-squared bishop outside of the pawn chain he intends to setup with an eventual d7-d6 advance to defend the ...e5 square.  Typically White will enjoy a small opening advantage with good play, but it is perfectly playable for black.  The best lines for black in the Kings Gambit Accepted revolve around defending the extra f-pawn from capturing on f4.  Fischer's Defense is a pretty good start: 

The best way to explore these openings are by using the Game Explorer feature provided by Chess.com--It's really a great way to learn about openings!

Hmmm.. Yeah I hate the kings gambit. Here is a game I just played where my opponent used the King's Gambit. We drew but I was uncomfortable the entire game.

Personally, I don't think the King's Gambit Declined (1.e4 e5 2.f4 Bc5) is a great continuation.  You don't really escape much of the attack, because white is going to open the f-file in any case, and it allows white a very fluid game without even having to pay for it with material.

The g5 lines (1.e4 e5 2.f4 exf4 3.Nf3 g5) are considered the most testing.  Even so, I don't have a taste for those positions, either -- seems dangerous to open up your kingside so much when the opponent is planning to attack it.

So I like the Modern (or Abbazia) Defense, 1.e4 e5 2.f4 exf4 3.Nf3 d5).  Opens lines, and returns the gambit pawn in exchange for an easy development (which is usually the better way to "decline" a gambit).  After 4.exd5 Nf6, black can play to either capture the d5 pawn, or play Bd6 to protect the f4-pawn and prepare to castle.

Judging from the blitz game you posted, your problems lie in the fact that your defense is far too passive.  You take on f4 completely giving up the center without fighting back for compensation-- Either by holding onto the pawn or by breaking up the center right away.  The Nc6/Bc5 setup walks right into white's plan of d4 where you have no compensation for the big center in the form of material or development.  You've gotta either fight to keep the pawn, or take advantage of the time White needs to recapture his gambit pawn by playing ...d5 type lines.  Your bishop just doesn't belong on c5 in KGA lines.