5.Ne5 or 5.Ng5? or should i try 4.Bc4 g4 5. 0-0.

Tell me what u guys think of the line :) 

4.Bc4 g4 5.O-O is rather playable for white, but few black players will risk this instead of the quieter 4...Bg7, which is usually considered =+. 

5.Ng5?! is the allgaier gambit. 5...h6 forces you to sac a piece on f7, and modern theory says that the compensation is not quite enough with correct play. However it's definitely worth a try, as long as your opponent is not well booked on this.

5.Ne5 is the best move, theory runs rather deep. The 2 main continuations are d6 and Nf6, chances are supposedly equal but the annoying thing is that black has some very drawish defences at his disposal.

I will be watching this . I am always very uncomfortable sitting on black side in Kings Gambit.

Does not 4 Bc4 lose the Knight ?What is the compensation .

sutlej, 4...g4 5.O-O if course is a knight sac, but the compensation should be quite obvious: after ...gxf3 6.Qxf3 black has not developed a single piece while the entire white army is assaulting f7. Fisher used to think that the line is a forced draw, i don't know what is the modern verdict. In practice it's a nightmare to defend black position. For sure white has serious compensation, and as far as i know the line is still usually annotated  4...g4?! since 4...Bg7! is probably both safer and stronger.

Blindside, this is not a trasposition , but the usual way to reach the muzio gambit.