My personal theology as it relates to free will (as best I can articulate it) looks like this:
#1. God knows every single possible decision we could make.
#2. God has a specific plan for us that he wants us to follow (living a life centred around him, loving everyone, etc)
#3. If we choose not to follow, then the universe (as created by God, if you believe it) reacts accordingly.
He knows what we can do, he knows what we'll probably do, but he doesn't want to be the one that forces us into it.
I've read through the thread and there's a few points to clarify:
If I just love God but am a terrible person, I'm all set because Jesus died for me
1. God, by his very nature, cannot be in the presence of sin.
2. Us people, by our sinful nature cannot be in the presence of God.
3. Jesus, as the physical representation of God, has access to the benefits of God (eternal life, sinlessness) and is human enough to interact with all manner of people (see: the gospels, where Jesus hangs out with people)
4. When he died via Crucifixion, he took on all our sin, and allowed us a glimmer of hope to actually receive the full benefits that Jesus did (relationship with God, forgiveness of sin, etc)
5. A necessary criteria to receive the fullness of these benefits is to believe in Jesus's sacrifice and love God wholly.
6. Loving God wholly includes things like loving your neighbours (even people you hate) as yourself and following God's wishes for us.
This is obviously my personal statement, and I welcome inquiries into it. I don't have all the answers (there was a time in my life where you couldn't identify me as Christian), but that's the journey I've accepted.