Leibnez- The Problem of Evil (or The Problem of God?)

I just read an article about Leibniz and his beliefs about god and the Problem of Evil. I found it in the Stanford Encyclopedia of Philosophy and am confused by his beliefs.
I read that he believed in two different possible philosophies.
1. "The Underachiever Problem"
2. "The Holiness Problem"

The underachiever problem entails that the fact that there is evil in the world shows that god cannot be all that he is made out to be. God must not be all powerful or all knowing, in now way he is omnipotent. It seems that this belief states that god messed up when he was creating the world and that he cannot know everything because he did not know what he was doing. He was an "underachiever" and that he did not think things through.
I disagree strongly with this belief. If god was not omnipotent and did not know everything than I do not even think that the world, rather, the universe would even be here currently. The being that created the universe would have to be all knowing or it would be unable to create such a vast and intricate system. It is honestly insulting that this theory is even in existence, but i cannot let my bias get the best of my judgement. I just do not believe that it would even be possible for an "underachieving" god to create such a universe such as the one that we are (hopefully :D) currently living in.

The Holiness Problem indicates that because of god's "intimate causal entanglement" of the world-makes him evil. It goes on to state that he is the source of evil. (Again putting my bias aside) In the christian tradition the devil is evil, but! he was a fallen angel that was in heaven with god. So god created him. (?) If god knew that he was creating evil, then why did he do it? The weird part is that i can agree with this theory more than i can with the other; even though it could be seen as more offensive than the last.
I can understand where this theory came from and i am not sure how to refute it.
The only possible way that i could refute it is by the explanation of God giving us free will, but honestly I am not sure if it can adequately respond to the argument.