Yes, there is free will.
What would the point be if there wasn't? What kind of story would LotR be? What would Aragorn, Frodo, Boromir, Smeagol, or any character matter if they did not have a choice when it came to their destinies? If Frodo was destined to take the Ring to Mordor, then what is there to admire in his character? If he didn't choose to be the hero, if he was simply forced by destiny or whatever/whoever, does he have any real strength of character at all? The same goes for Aragorn and accepting his kinglyness. If he had no choice, where's his strength and majesty that we all can admire? And what about Boromir: was he simply destined to be desirous of the ring? If so, then what need is there for him to feel guilt at all? Where's the human struggle?!
And I could never accept the fact that Smeagol
had to kill Deagol and become the horrible wretch of Gollum...
And now I think of Galadriel and her little temptation. She had a choice. She held a great power, and any true power can be used for both good or evil (though really there's no happy medium). What would the point be if she didn't have the option of using it to make herself powerful, and thus with rather dark intentions? It wouldn't be a true power, as the highest power will lie at the peak of a mountain, at a dangerous height, where it is easy to fall.
No free will, no choice... I want my human struggle!
-Durelin