Again let us stress we are not interested in the orthodox philosophical arguments since we are examining the standpoint of the potential validity of free will.
We can certainly accept the idea that the higher-self has free will, but what about the lower-self---the human extension? Firstly, karma or the negative forces may stop one, but this is nothing to do with free will. If, however, the higher-self has a program for the lower-self which is preventing the lower-self from utilising free will, since the lower-self is the higher-self basically then the lower-self has no free will under these circumstances as far as the program goes.
We learn to understand that admittedly these higher-self programs are normally ideal and for the greatest benefit. Thus in this case the lower-self will not be allowed to have free will where an action is in opposition to the higher-self's goals. However, we do know that lower-selves commit crimes, etc. These are never higher-self programs. Thus the lower-self is free to carry out an action if 1) there is no higher-self conflicting goal, or 2) the goal is based on simple steps, such as going from A to B: steps which can be manipulated linearly and physically (or thought-wise), executed deliberately by the lower- self even if against the higher-self. A simple analogy here is to consider taking the dog for a walk, using a fairly long lead. You determine the path to take ('you' corresponding to the higher-self) but the dog (corresponding to the lower-self) has free will according to how long the lead is; the dog can even get into mischief. In this analogy (1) above would mean the human is 'steering' the dog for this period or event but this is where the dog wishes to go anyway. Thus there is a nonlinear synchronous condition here. There is total free will for each and both. In 2) the dog moves into an area within the lead length that the human does not approve of but does nothing--or maybe give a few tugs of discouragement with the lead.
Thus the lower-self can have free will in this manner. After carrying out misdeeds on a regular basis the addition of negative forces may arise enabling the lower-self to have more apparent luck as well as the ability to go from A to B. The lower-self is now losing guidance from the higher-self. Negativity is working with the person and influencing the 'dog's lead'---reducing the effective guidance.
How can this fit in with paradox 3 that everything is all right? 'Everything is all right' means that the final outcome will always be positive no matter how much one goes astray. In fact the process of going astray has the potential and maybe purpose to erase karma. How can one be free to commit a crime and it is all right?
Basically the higher-self or God/Source is always in control (for the big picture) but the ego with its crimes can in fact have apparent free will. This is an apparent violation of the very presence of God but is illustrated by the dog analogy. There is also a more technical explanation of this of a more advanced physics nature; a simple analogy in quantum physics in which at the particle level it is possible to have a violation of the conservation of energy. There may be a momentary huge fluctuation in energy which seemingly came from nowhere. However, if one takes the bigger picture, that is, a longer time interval for the measurements then it is compensated for, and energy is found to be conserved (the 'violation' eventually resolves itself).
Thus the ego can split the (perfect) energies into a duality; one pole is the mirror-image of the other and can cancel it. But this cancellation may not occur for a long time. It is nevertheless eventually going to resolve--see paradox number 9. The constant dividing of the energies--dualities--will enable the ego to commit errors of free will (and deteriorate) but this will continue to pull it back as the opposite pole attempts to seek wholeness and perfection of energy balance and harmony by cancelling the other pole. All we are saying here is that even when the ego is taking negative routes in life it is constantly being taught by the dualities to come back into alignment with the higher-self--all its mistakes are eventually reflected back. The underlying mechanism of free will, however, is related to the multidimensional nature of consciousness--see article on The Theory of One.
A final point is that, mathematically and scientifically speaking, one could take an infinite number of these levels, that is, infinite nonlinear variables superimposed; each in the context of the next one above, demonstrating the full internal mechanics (when broken down like this) of consciousness and free will.