Free will as I see it is the ability to make any choice. Be it with/out information and everything in between. Even with the idea that entity out there knows everything that you are doing, you still maintain the ability to choose to do whatever you want, or at least the illusion. And the illusion of choice is as realistic as being able to choose.
In this I hearken back to an old science fiction/fantasy idea that sufficiently sophisticated "magic" looks and feels exactly like technology. While sufficiently sophisticated "technology" looks like magic. I'm not sure how to word it with the idea of free will, but the idea carries the same meaning, if a person can not distinguish from free will or the illusion of free will, then there really is no difference for the person. Where the difference does come into play is with the entity that knows a person's lack of free will.
To the entity that knows every move that will make for him the free will does not exist for the people that it is watching. It becomes a position such that since it is known, people's choices have no meaning. This can be said to be exactly like an abusive relationship (i'm not saying it is but this particular situation is the only one that i know carries all of the characteristics to demonstrate my point). Within an abusive relationship, it is created in such a way that a persons entire life becomes 100% dependent upon the abuser, the abuser becomes the complete world which in turn removes any exposure to outside options or even if outside options are considered they have no notion of how to go through with the option. For example the idea of killing the abuser may never occur because the abused may never had heard of the idea. The idea of denying the abuser may never occur because of past experiences with being beaten. The only way free choice really enters into the picture in this case is if a person can see the validity and trying of another option.
(at least my two cents hopefully it adequately addresses the topic, if not i just wanted to try)