If God is Outside of Time and Sees Every Event, Are Any Human Actions Free?

A colleague asks, "If God is outside of time, then does the current physics model mean that there is an "Elect" because God can see the whole 4-D picture?"

As far as I can tell the popular Einsteinian understanding of the universe as a four dimensional block (as opposed to a Newtonian understanding which holds space as absolute, the universe as three dimensional, and time as not being a fourth dimension) does not pose a special fatalist problem (with certain qualification that I won't get into).  A fatalist problem arises even if one thinks of the universe along Newtonian lines.  Here is a general fatalist argument involving a timeless God which makes no claims about whether the universe is a 4-D block or (only) a collection of 3-D objects (I'm taking the basic framework for Linda Zagzebski's book on the philosophy of religion):

Let K be the event of some person A killing B on Saturday.  Then,

(1) God timelessly believes K and is infallible.

(2) Nobody now can do anything about the fact that God timelessly believes K and is infallible.

(3) Nobody now can do anything about the fact that if God timelessly believes K and is infallible, then A will kill B on Saturday (what is next Saturday to us). 

(4) So nobody now can do anything about the fact that A will kill B on Saturday (what is next Saturday to us).

(5) If A cannot do anything about the fact that A will kill B, then A will not kill B freely.

(6) So A will not kill B freely. 

The key premise, as I see it, is premise (2).  Why should we think that nobody now can do anything about the fact that God timelessly believes K and is infallible?  An alternative is often called "Ockham's Way Out" (after the medieval philosopher William of Ockham).

Principle of Counterfactual Power over the God's Beliefs (CPGB): It was within x’s power at some time T1 to do something such that if he did it, God would not have held the belief He in fact holds.

In affirming CPGB one does not  have to hold:

(i)                  God's knowledge can be CHANGED.  Or that

(ii)                His knowledge is CAUSED by us (though some might want to hold this as well).  

One does have to hold:

(iii)              God's knowledge counterfactually depends on some of our actions. Some of God's beliefs wouldn't be what they are were it not for the fact that A did action K rather than refraining from K (or performing action L).