Ng4 saves the knight, and blocks the queens attack on g2. After black moves the d pawn to open the bishops attack on to the knight. Then follow with Ne3, to again save the the knight and stop the queens attack on g2. White has lost time, but the game is still playable.
what is the best move for white in this position?
I don't know what the normal move is, but everyone I seem to ask doesn't like going into the Exchange Variation of the Ruy Lopez because of positions like these.

you don't play the Exchange Variation. Unless for some reason really like it.
no offense, but I do like it.

I'm kinda surprised that you even CAN reach that position. If I counted the moves right, black is missing one... are you sure a7 shouldn't be at a6? but as far as your situation, there's a few different moves that I know of. Ng4 or Nc3. the first line goes
6.Ng4 d5 7.h3 bxg4 (Ne3?! is met with d4) 8. then take with the queen or the pawn. they both lead to queenless games.
or
6.Nf3 is pretty impossible to predict where its likely to go, but I think the queen takes g2. maybe.
This is the all I got from the games I've come across, I'm sure someone can fill it in better, hope this helps.

I'm kinda surprised that you even CAN reach that position. If I counted the moves right, black is missing one... are you sure a7 shouldn't be at a6? but as far as your situation, there's a few different moves that I know of. Ng4 or Nc3. the first line goes
6.Ng4 d5 7.h3 bxg4 (Ne3?! is met with d4) 8. then take with the queen or the pawn. they both lead to queenless games.
or
6.Nf3 is pretty impossible to predict where its likely to go, but I think the queen takes g2. maybe.
This is the all I got from the games I've come across, I'm sure someone can fill it in better, hope this helps.
fixed it. thanks

Just looked at the game explorer for this variation, and it doesn't look good for white... if less than 20 masters games count for anything, looks like Nf3 is the only one that comes up ok for white (33/33/33) Ng4 is (14/0/85)...

Just looked at the game explorer for this variation, and it doesn't look good for white... if less than 20 masters games count for anything, looks like Nf3 is the only one that comes up ok for white (33/33/33) Ng4 is (14/0/85)...
The odds are that bad?
Anyways, I used another move and I beat my opponent (althoughay have to do with lack of ability).

Umm if its white to move white simply plays d4 and is clearly winning and up a piece no? What am I missing if no one has come up with this? I'm not THAT good. White retains his extra piece while simultaneously attacking Blacks queen forcing it to retreat. What could be better? Not to mention white has the pawn advantage. Of course there are other moves simply protecting the knight like Nf3... all of which would be winning for white as he's a piece up with no worries.
edit : Ahhh I bet you created the diagram wrong and that bishop at f1 doesn't belong there and would actually have already been exchanged. I get it now.
Ruy Lopez: Exchange Variation, Lutikov Variation
I get caught with a lot of these. What do I do next?
Note: Go to the end.