if Satan was so smart though, shouldn't he have known that he wasn't going to win? And was that the first sin in existance? And if so, where did it come from. In a heavenly sinless place, where does the sin virus sneak its way in, and why would God allow it?
Ezekiel also speaks of Satan's fall and its cause. Ezekiel 28:14-17:
"You were in Eden, the garden of God; every precious stone adorned you: ruby, topaz and emerald, chrysolite, onyx and jasper, sapphire, tourquoise and beryl. Your settings and mountings were made of gold; on the day you were created they were prepared. You were anointed as a guardian cherub, for so I ordained you. You were on the holy mount of God; you walked among the firey stones. You were blameless in all your ways from the day you were created till wickedness was found in you. Through your widespread trade you were filled with violence and you sinned. So I drove you in disgrace from the mount of God, and I expelled you, O guardian cherub, from among the firey stones. Your heart became proud on account of your beauty, and you corrupted your wisdom because of your splendor. So I threw you to the earth; I made a spectacle of you before kings."
Satan took his eyes off God and took a look at himself. He must have been extremely beautiful. And, hey, he was a guardian cherub. He really thought he WAS all that. After all, since he had taken his attention from God, he was the most beautiful, most important, most powerful thing he could see.
God allowed it when He created the power of choice, and gave it to His creations. Forced worship is no worship at all, even from angelic beings. So God allowed his creation to choose to worship Him or not. But any created being who refuses to worship - who sets himself up to receive worship due to God alone - must be cast out of God's presence, because He will share His glory with none other.