John 10:34 Jesus answered them, "Is it not written in your law, `I said, you are gods'?
This is a quote from a Psalm:
RSV Psalm 82:1 A Psalm of Asaph. God has taken his place in the divine council; in the midst of the gods he holds judgment: 2 "How long will you judge unjustly and show partiality to the wicked? Selah 3 Give justice to the weak and the fatherless; maintain the right of the afflicted and the destitute. 4 Rescue the weak and the needy; deliver them from the hand of the wicked." 5 They have neither knowledge nor understanding, they walk about in darkness; all the foundations of the earth are shaken. 6 I say, "You are gods, sons of the Most High, all of you; 7 nevertheless, you shall die like men, and fall like any prince." 8 Arise, O God, judge the earth; for to thee belong all the nations!
So as we can see this psalm is about men who are to give the judgements of God. They are called 'gods' because of this role. But they are showing partiality to the wicked (ver. 2) They should be just (ver.3, 4) But they themselves will be given an unfavorable judgement (ver. 5-7)
Jesus will say below that they are called 'gods' and 'sons of the most high' because the word of God came to them to be given to others, but these men were wicked.
But isn't Jesus THE WORD OF GOD made flesh? How much more should He be able to be called the Son of God and he is good.
Keep this in mind while you reread John 10:22-42
Jesus is saying to them, 'you are going to stone me because I call myself the son of God? Hey doesn't scripture call some pretty wicked judges (like yourselves) sons of the most high? Why can't I use it then? For which of my good works (and not evil works, like you produce) are you going to to stone me for?
In other words, this is like the scene in Star Wars (Empire Strikes Back) when Dark Vader has cut off the hand of Luke and then tells him that he is his father. Luke screams " NO! I will never join you!" (Terrible example I know Darth Vader being Jesus and Luke being these men.) But this is the opposite. They need Jesus to NOT be the Christ, because he doesn't fit into their gospel.
Now you should also know thet certain groups (Mormons) quote this verse to show that we can become gods ourselves some day. This is not accurate from this verse. This verse needs to be read in the context of it's original meaning from Psalm 82. Now God does deligate some of his characteristics to us; God is judge - He gives others the power to judge. Jesus is the Light of the world - He makes us the light of the world.
Mormons would say that if we have these qualities, while God may have originally given them to us, they are now ours for the posessing that some day we (as gods) will be able to give to others.
Hope this helps - if it doesn't - let me know.