Error message--Outlook Calendar-exceeding iCloud limits

I am on Windows 7 and Outlook 2010. I synk with my iPhone with iCloud. As I try to save new events in Outlook (desktop) I get an error message: "could not save item. Exceeding iCloud limits" I checked my desktop iCloud and I am using a fraction of the 5GB. Anyone else has this problem?

I have the same issue
WIndows 7, Outlook 2010, all the latest win updates loaded. including apple and microsoft OS/apps.
I use iCloud with iPhone IPad, Macbook Air w/Outlook 2011 Mac and PC with the above config.
I also tried Google Apps, but that doesnt seemt to work well for calendar & contacts, email no problem
The exchange server worked great, but looking to move off that service, but keep the ability to use outlook.
Working with the apple team, they suggested moving to iCloud. 
"Exceeding iCloud Limits!" - which doesn't seem to be clear what they mean for two caledar items added in outlook PC.

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