No, God did not create sin, that is beyond His creative power since that would contradict His Holy essence.
God always knew what Lucifer would do with his free will. If God knew and did not restrain it then did God in EFFECT predestine it by His non action?
Yes and no.
The difference between our views is we state that God has two revealed wills, one directive, that which God wants (His commands and directives) and the other a permissive will, that which God allows since He has given Angels/Mankind the ability to choose.
Man cannot avoid the consquences of his choices, those were decided by God but man can make choices that go against God's directive will.
Now, unless you are going to go the route of Pink and state that even sin is God's will for your life, everytime you and I seen we are under the Permissive will of God and not the Directive.
http://www.ccel.org/c/calvin/comment3/comm_index.htm
Calvin on Isa.45:7
Making peace, and creating evil. By the words "light" and "darkness" he describes metaphorically not only peace and war; but adverse and prosperous events of any kind; and he extends the word peace, according to the custom of Hebrew writers, to all success and prosperity. This is made abundantly clear by the contrast; for he contrasts "peace" not only with war, but with adverse events of every sort. Fanatics torture this word evil, as if God were the author of evil, that is, of sin; but it is very obvious how ridiculously they abuse this passage of the Prophet. This is sufficiently explained by the contrast, the parts of which must agree with each other; for he contrasts "peace" with "evil," that is, with afflictions, wars, and other adverse occurrences. If he contrasted "righteousness" with "evil," there would be some plausibility in their reasonings, but this is a manifest contrast of things that are opposite to each other. Consequently, we ought not to reject the ordinary distinction, that God is the author of the "evil" of punishment, but not of the "evil" of guilt.
Did God foreknow the sin of Lucifer?
The Arminian rationalization seems to take one step forward and two steps back.
Reread what you wrote, FTD.
"...beyond His creative power."
Do you not see how you limit God? It doesn't take a Calvinist to believe that nothing is beyond God's power.
It only appears as a contradiction to our human minds. It is God's will. We shouldn't fear it. It is all there is.
And it is everything.