Thankyou all,
So what I got from this is, we are here for a mortal body and we are here to choose good or evil, regardless of our knowledge of God.
But didnt we choose that already? Why is it necessary for a second test ? I chose Christ over Satan in the beginning. I knew good from evil then didnt I? I certainly knew happiness from sadness, as the scriptures attest: D&C, 76:26 / Job 38:7
Perhaps it's one thing to make a choice while you have the influence of God and his presence with you daily, and a sure knowledge of it. And perhaps it's another to make a choice under a probationary spiritual death (Absence of God), without a knowledge of His existence.
So to be more specific, the answer to the question, why are we here... is, we are here to gain a physical body, and to determine for ourselves what we would like, good, or evil, and this is to be tested for a short period under the conditions of spiritual death. A kind of, next level test to our pre mortal test.