1) God is all good.
2) God is all powerful.
3) Really Bad Evil exists in the world.
I would recommend: "Encountering Evil: Live Options in Theodicy", Stephen T.
Davis, Ed. (John Knox Press, 1981). Davis is an Evangelical, and writes well
about the Free Will theology that most folks on this discussion will be be
familiar with. This book is also a good introduction to Process Theology,
which many claim is a more scientifically valid approach to theology than
classical approaches. Process Theology is very attractive for theodicy
questions (God is **not** all powerful, and so cannot control events, only
influence them).
Good luck engaging this topic! I'm back into night school for another
semester.
David Bailey