My rendition: Illusion
Subhuti, what do you think, can Tathagata (如來) be viewed as a discrete person (sentient being)? (No, World Most Honored, one can't view Tathagata as an absolute being.) Why so? (When Buddha refers to physical body, he does not refer to any concrete physical body). Buddha told Subhuti:
Every perception is illusion
instead of absolute
You are in one with Tathagata, when
you can see illusion out of absolute
Paul's comment: The chapter contains a definitive verse of the Diamond Sutra. Following the modeling concept, the Buddha said, "You are in one with Tathagata, when.....". It is important to note that throughout the Diamond Sutra, the Buddha was not telling people what they should do or what not should be done. He was essentially saying, if you want to learn from me, you must be like me, or "in one withe me". And in the final analysis, if the learning experience is successful: you will become a Buddha.
Another question: why is it important to say "When Buddha refers to physical body, he does not refer to any concrete physical body". The reason is if one "refers" to a concrete physical body, he will develop an "attitude" towards such object (no matter good or bad). And such "attitude" will be limiting. Therefore all such perceptions [所有相] (reference or attitude) are (or should be viewed as) illusory rather than being absolute.