Hi Betani !!

... Welcome !!
Several have done that program, but not me, I'm sure they will come along and give you some personal insight....If you start the Couch to 5k and your knees are too sore, just taper it down to suit your needs and eventually you will be able to do it... What's the rush to do it exactly as stated in the training program?... Also, at first if you can't run it all just walk/run, 1:1 one minute each...
As for walking or running for making bones stronger I really don't know which is better

... But one thing I do know for sure is that weight training is your best friend when it comes to bone density and making bones stronger. I see that you are only 29, I was talking to a lady in the gym yesterday, she is at least between 50 and 60 I didn't ask, she was saying how much easier her yard work is now since doing some weight training and going to the gym. Shes has osteoarthritis and MS !!
You should definitely keep walking but try the run/walking routine it'll be a great change, and if you possibly can I highly recommend seeing a qualified personal trainer at a gym and getting the basics of weight training to help your bones. Even if you don't have arthritis it will help prevent it or keep it at bay when you are menopausal...
I hope this helps...