Does availability only work w/ iCal Server calendars?

We have enabled iCal Server in the hopes that it will solve our meeting coordination problems, but it looks like the iCal / iCal Server combo don't perform as you'd expect when looking at attendee availability for new events.
As far as I can tell, events on your local calendars don't block out time on the availability window -- only events on server calendars (CalDAV) do. So if I have a doctor's appointment at 10am tomorrow on my personal, local calendar, and someone at work is trying to set up a meeting with me, they will see that time block as open. Only if I set up a personal calendar on the company iCal Server, and put the event on that hosted calendar, would they see that 10am was blocked.
I've tested this several ways with a few different test calendars on the server, and it looks like this is so. There's a checkbox "events affect availability" when you right-click on the hosted calendars, but that option does not appear on the local ones.
We want to encourage adoption of iCal using iCal Server to improve coordination at our company, but I doubt that few if any will put their personal calendars on the company server.
Are we doing something wrong here? Or is this really a (giant) limitation of iCal?
This is using iCal 3.0.4 from the OS 10.5.4 update, and iCal Server 10.5.3.
Message was edited by: Greg Y

Ok, I guess I think I found the answers in the iPhone Users Guide on the Support site.
If I understand correctly, it appears that iCal Server Calendars are considered read-only on iPhone. You can only accept meeting requests? I assume this because in the snippet below it says that "Subscribed Calendars" are read-only.
This is from the iPhone User Guides under the "Calendar" section:
Subscribing to Calendars
You can subscribe to calendars that use the iCalendar (.ics) format. Many calendar- based services support calendar subscriptions, including Yahoo!, Google, and the Mac OS X iCal application.
Subscribed calendars are read-only. You can read events from subscribed calendars on iPhone, but you can’t edit them or create new events.
So, it appears I can't use the iCal Server as intended. I wanted to store the calendars in one location using the Calendar server. I originally had this all working by publishing the calendars to my apache server with WebDAV enabled. I thought I could get rid of that and use the Calendar server instead. Appears I was wrong..or am still misundersanding something.
Also, i found out why I didn't have the "Default Calendar" option in Settings. It turns out that you have to have more than one calendar enabled on the phone and they have to writable. So, because I had all server subscribed calendars that option wasn't shown. As soon as i added NON-SERVER calendars that option reappeared.
Is anyone else using the Snow Leopard Calendar server and iPhone?
- Tim

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