Is it time to give up on the Touch and iPhone?

I have tried everything, I think, to get my iTouch to sync with iCal. It just can't deal with all-day events.
It adds a day, either at the end or at the start. Everything looks right in iCal, but as soon as it gets on the Touch it's screwed up. Unfortunately this makes it useless.
I have made sure that they are on the same timezone.
I have made sure they both are not using timezones.
I have erased the Touch, several times.
I'm on version 1.1.4 (4A102) on the Touch, 2.0.5 (1069) on iCal, 7.6.2 (9) iTunes.
There doesn't seem to be anyway of getting help from Apple themselves.
I'm at loss......

Hi Scott
Thank you for taking the time.
I'm a bit unclear myself. I've been battling with this problem for months now.
Lets see if I can explain it better;
One example is on 20th June I'm sailing to Malahide.On the iCal it is very clear. All-day, start 20/6 end 20/6 in the Sailing calendar. However on the Touch the event says "All day from Thu 19 Jun 2008 to Fri 20 Jun 2008." Thus an extra day has been added to the start.
Another example is my brother Marcus' birthday. Again iCal is correct saying "All-day from 3/7/8 to 3/7/8. Here the Touch says "All day from Thu 3 Jul 2008 to Fri 4 Jul 2008." Thus adding a extra date AFTER the event. I know he's a bit of a party animal, but how does the Touch know that?
Let's take a longer event. 420 World Championships in Athens from the 22 Jul 2008 to the 31 Jul 2008. Again iCal is correct but the Touch has added a day at the start and show it starts on the 21st.
Again around the same dates, my son has his birthday. The Touch has added a day, and again as with the other birthday, it is at the end of the event.
My normal workflow is using Entourage for emailing and scheduling. I use e2Sync to push the contacts and calendars to iCal, which works great. All events show up just the same. It is when I sync the Touch using iTunes everything goes pear shaped.

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