Entourage 2008 & iCal sync inaccurate free / busy status for events

On a campus using Exchange 2007, I am using Entourage 2008 and sync to iCal 3.0.2 (Leopard) via Sync Services in Entourage's preferences. Both Exchange 2007 and Entourage 2008 have only been installed in the last two months.
I have found that events which I mark as "free" in Entourage 2008 are changed to "busy" after a sync with iCal. The free / busy status is correct when the sync with Exchange takes place, but the status is incorrectly changed to busy every time the iCal sync takes place.
I need to put campus events, co-worker planned absences, and similar things on my calendar, but these items need to remain as "free" so that I can be scheduled during those times. This all worked correctly with Entourage 2004 and the older version of Exchange.
Does anyone know how to correct this behavior so that the free / busy status is not changed with a sync to iCal?

Sue,
Wish I could offer some good advice, but the easy syncing of iCal and Entourage 2008 so far has been impossible if not a nightmare.
When you go to import in Entourage and iCal is NOT listed as "another application", we are in HUGE trouble.
A real shame that in today's world of "New Media" and PDA's like iPhones and Blackberry that the two billionaires from Apple and MS did not provide us with easy and simple export/import/sync tools.
Maybe they should rename Office 2008 to Office 1984

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