Availability Panel showing grey for every invitee

I've been trying to use iCal to allow folks to propose meetings with me, using the availability panel. Prior to letting folks know they can use this feature I've been testing it and no matter what I do I cannot get any invitee to show availability when proposing a meeting. This is using the iCal availability panel. Every proposed invitee shows grey (no available time). This happens even with accounts that I created just to test the problem; the accounts have no iCal appointments at all.
Am I correct to assume that the check availability feature should work across iCloud or thing something that only works when all invitees are on the same server?

I just heard about an app that apparently allows you to see other people's availability when scheduling a meeting. I haven't installed it yet, but plan to. If you end up installing it, let me know what you think. Here's the link:
https://itunes.apple.com/us/app/exchange-scheduler/id546857260?mt=8
Good luck!

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