ICloud/iCal meeting request does not work

I currently use iCal/iCloud on my Lion MacBook Pro.
In the past, using MobileMe, I would be able to send meeting requests to WinTel/Exchange recipients. The email that the recipient would receive gave them the options to accept, decline or Tentative. These were always useless and misleading options as choosing on these did nothing to add to the recipients calendar. It was only a way to notify me, the sender, of their response. The recipient would have to take the additional step of double clicking on the attached .ics file to add to their calendar.  If the recipient did not choose one of the three options but double clicked on the .ics file, I was never notified of their response.
But things have gotten worse with iCloud. Now, the recipient receives the same email, with the three options that now do nothing, but when the recipient double clicks on the .ics file, it shows that the recipient is the creator of the event and cannot add to their calendar or modify. THEY ARE NOT ABLE TO DO ANYTHING WITH THE REQUEST.
I just had a Chat with support and was informed that any recipient that I want to send a meeting request to MUST have an iCloud account and have the panel installed. This is not only cumbersome but in most cases not doable. Some of my meeting requests are to recipients in corporate environments and have restrictions on sites and apps.
How is Apple to be taken serious in the business environment with these types of restrictions?
Thank you.

Hi,
Thank you for your quick feedback.  Maybe my situation is a  little different, since I am on an Exchange 2010 server myself.  My "accepted" does not even get mailed out. And when I receive an "accepted" mail, iCal and/or the server do not recognize it.
I talked to the Apple support yesterday on their hotline and they claimed they never heard about it. Whereas our IT department, who is in charge for many thousand users, is also in touch with Apple directly and says that they have several users with this issue....
Anyway, did you activate in both iCal and Mail.app that calendar data are retrieved automatically?
Below some screen shots. Since I have all these issues, I have turned it OFF, you might need to turn this ON.
Mail Settings
iCal Settings

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