ICal + iPhone + Exchange 2003 + Outlook 2007 + "all day" Events 7 hours off

Whenever an ALL DAY event is created on either the iPhone or iCal when the event is synced thru Entourage and into the Exchange Server and into Outlook 2007 the appointments are off -7 hours which I believe works out to GMT with Daylight savings time kicked in. Times are correct in Entourage. Correcting the time (making it an ALL DAY event) in Outlook 2007 and the resulting re-syncing does not impact Entourage, iCal or the iPhone. Since iPhone is syncing via iCal as the first step, I believe the issue is with iCal no the iPhone.
Time Zone Support is OFF on iCal and the iPhone.
iPhone updated to 1.0.1
iTunes updated to 7.3.2.6
iCals ver 2.0.5.1069
Vista Premium and Outlook 2007 Fully Patched
Thanks

This had no impact on the problem. I have confirmed that this is an issue with iCal and not the iPhone. An all day appointment on for example August 15 created in iCal shows up correctly in Entourage syncing to an Exchange Server. However, when the appointment propogates to Outlook 2007, the All Day event now displays as from 7:00 pm August 14 to 7:00 pm on August 15.
Time Zone support has no impact regardless of setting on iCal.
Close inspection of the Event in Outlook shows ALL DAY is selected but the greyed out times are from 7 to 7 as described above.

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