About the married/married filing separately, if you file married you have to include your spouses income but you get the deductions too. The only way this would be advantageous is if your spouse was unemployed or was for most of the year. In this case, you would add no income and still get close to $10000 deductions.
In my opinion, never trust anything H&R Block tells you. They go through a few week training course and outside of the major deductions, they dont know anything. The foreign earned income form is really easy and self explanatory and you should be able to fill it out. It has its separate instructions and the IRS's instructions are usually written pretty well and on a level that everyone can understand.
As for Turbo Tax, I have no idea. I would imagine the free version will not allow you to do it. Usually the free versions of any product are for straight forward 1040's. I dont know for a fact but I would guess that you will have to file a paper return and not be able to efile using any program except the really expensive products.
Also, just to let you know, I am not an expat tax expert by any means. I do know alot about the issues as I do most tax things, but I work in corporate tax and have since the second I got out of undergrad. I do have a Masters in Tax with an emphasis in International Tax so I have definitely done my fair share of research on expat stuff. I am however, really good at research and know exactly where to look for questions so if you have any specific questions, feel free to PM me. I dont mind helping at all and I can probably find things way quicker than someone who isnt used to the IRS' crazy site and I also have access to tax research software. 2010 will be my first personal expat return so it will help me learn more myself.
