Crap. I wish I had more time to reply to this right now, but I'm going to have to give a short answer. I'll try to come back tomorrow and contribute more.
Anyway, I studied religion and philosophy in college, so this is something I've discussed before a lot. Allow me to correct one thing there. If you are referring to the Christian God, He did not predestine people to hell. According to the Bible, the human race was created perfect and placed in paradise, called the Garden of Eden. Man was immortal and blessed with a perfect world. But the archdemon Satan corrupted man and turned paradise into the world filled with death we have today. As a result, man's nature was corrupted so that everyone is born mortal and separated from God, thus our "default" setting is Hellbound. Our 'free will' enters into this equasion in that we have the choice of whether to accept God's lifeline, the sacrificial death of Jesus, and be redeemd to God, or whether we reject his offer and stay in our default state. According to typical Christian doctrine, that's the point of free will, for man to decide whether to choose God or to ignore Him.
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Not to get religious on anyone. Just answering a question.
Also, I would point out that part of the nature of "God" in the sense that he is omnipotent and omnipresent, he is also omnitemporal. He exists outside of time because he exists outside of space. And by necessity as time and space are intimately linked, if one exists outsides the bonds of one he exists outside the bonds of the other. So God, being outside space-time can see the entirety of history at once. In a sense, it's like Doctor Who being able to travel to any point in history, past or future, but with God he sees it all simultaneously. So it wouldn't be so much that he "predicts" the future, as He sees it happen and knows precicely what people will choose to do and what will happen.
Anyway, I have to go. Perhaps I can contribute more tomorrow. Stay classy everypony.