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I've skipped over a good deal of the discussion, so if I've missed something, I apologize. The way I've always understood this conundrum is that God is outside of time entirely. He exists in what we, as temporally-limited beings, consider the past, present, and future. We are limited to only move from the present forward. God has no such limitations, and being outside of time, His observation of events does not affect our free will.

I've heard a friend of mine likening it to someone in a boat in a river. The river branches, and the boatman can choose to go one way or the other. He chooses the right. Someone on the bank of the river, outside of it, saw the person make the decision and is fully aware of it, yet had no influence on the actual decision. This is what God does. We make the decisions, but due to His viewpoint, he already knows our decision. It doesn't affect our free will one iota.

Interestingly, this also means that God allows evil to exist. And we know this has to be the case. God gave Adam and Eve the choice to either obey Him or not from the very beginning. Evil, by definition, is anything that is against God. And we know earlier that the same choice was given to Satan. And if there is no alternative to God, then there is no choice, and therefore we are merely automatons created to serve him with no free will. The fact that we are free to choose Him makes that worship actually worth something to Him.