Isn't it interesting that the Hebrew word for evil, Ra is also the name of the Egyptian Sun God? I'd almost be willing to bet money that there's a direct connection.
I do not believe that God directly created moral evil. However i do believe he has no choice but to allow it to exist.
I agree with discussions on previous threads that we do not have freedom of will. However we do have the freedom to choose our own path in life. A subtle but distinct difference.
In that case moral evil becomes a terrible but necessary by-product and it shows that there are limits on what God can do. If he were to eliminate moral evil he would also have to eliminate our freedom to choose and he can't do that without making us all robots.