It appears that the knowledge of good and evil relates to one's ability to sustain or destroy a particular [eco-]system. For example, the ability to procreate uncontrollably acquired by man and his wife by eating the forbidden fruit would destroy the garden of Eden. It would also remove control over procreation from the Lord God's exclusive domain, i.e. constitute loss of a system control point. From the Lord God's perspective this is evil, because he created mankind, among other tasks, "to replenish the earth". Unfortunately, the system to ensure this outcome without controlling the rate of procreation directly had not been introduced at the time.
From the woman's point of view "the tree was good for food", which is an indication that she was not aware of the impact of her actions on the super-system, i.e. the garden.
also see
http://www.livejournal.com/users/watertank/577718.html - "all the impulse of the thoughts of his heart was only evil continually."
On the other hand the act of creation that lasted the first six days was "good" ( see
http://www.livejournal.com/users/watertank/571368.html )
- need to consider implications for evaluating control mechanisms, including economic vs moral incentives (see e.g. Freakanomics)
- search for instances of the word "evil" in the Lord God's speech. cf with other occurrences.