Two meanings: 1. Do you want to test me? That is, test my patience, test my limits. 2. Do you want to see how good I am in bed?

1) you do not want to test my patience 2) You don't want to test my skill (at something)?

yes, eliot is right.

Often guys will say this to each other as a challenge to a fight.

If you're a girl and say it to a boy. something will happen :D