I want to play a game I have on B.net. So I create a game, but can only invite people on my friends list. The option to open to public is greyed out and I get the message: "Option unavailable when observers are present"

What does that even mean? How do I fix it?

This looks like a Game Variants problem. Mind posting them?

Yes, I have to agree that it appears to be a problem with Game Variants. There's a small possibility that it is something different, and there are any number of things which could be problematic with the Game Variants, so your best bet in reaching a solution is by posting them so we can tell you what the exact problem is.

Well i looked in the game variants, but everything was just labled custom. I have a long way to go to figuring this stuff out, and I am learning a lot by making a lot of mistakes. Thanks for the help, here is my map:

http://www.mediafire.com/?6vhjlpk1lsw11i3

First of all: the map's layout looks really great! The dimensions are most likely to make the game fast-paced, which most of the people like.
Secondly, I took a brief look into your Map Init. trigger (just for fun), and realized it looked like you didn't know about "Pick Each Integer" action.
Those "player != playing => remove unit" actions could've been made much faster by doing:
"Pick Each Integer 1 to 8, If player [picked integer] != playing => remove unit from blabla[picked integer]".

An other thing: when using arrays, I'd STRONGLY suggest to do +1 array. What I mean is that if you want a variable with 8 arrays because you think you'll use it independently for 8 players, well, instead of 8 arrays, give it 9 arrays.
Why?
Because arrays start at 0 and not 1. This means you already have made the error: in your map, "PlayerUnit" variable has 8 arrays, and you start with [1], going up to [8], while first array is [0] and the 8th is [7].
With 9 arrays, you can skip the 1st array (being [0]), and start directly with a matching array-number with the player-number. It also helps a lot with [Picked Integer] since we can't do [Picked Integer +1].

Now, for the Game Variants:
Not sure if it's because I simply opened as a Temp(orary) file, but it looked like you had absolutely NO Game Variants. I'm too lazy to save (ya, -that- lazy), so could you confirm me that you have no Game Variants?
We have a Wiki explaining those. Check it out!

Ok i think I understand what I was missing. Ofcourse now I get an error when I try to upload the map: "Variant definitions could not be validated"

I went to the wiki and even tried removing variants that might not be working, but I am not even sure if that's the issue anymore. It seems like every time I fix something, something else breaks. Once again, here is a link to download the latest version of the map. And as always I appriciate the help and hope that as soon as I get this all working I can make some better games for everyone.

http://www.mediafire.com/?vlvns01i1499fu3

1) Add an array-size to your variable "PlayerUnit". I've already explained you why.
2) Remove the "Rules" Variant: I never used it and I don't know what it does.
3) You have 3 "Teams" Variants. They for sure conflict with each other. You must have at most 2.
4) "Color", "Race" and "Controller" should all be set into Player Properties. Remove those from the Variants.