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Also, I'm using IcalSync2 on both by android tablet and my phone. So the difference between the phone and the tablet are as follows:

(a) Different version of Android (4.0 vs. 2.3); and

(b) and different calendar app (on tablet it's the stock calendar app that comes with the cm9 ROM I'm running--although it also seems to work correctly in stock google calendar app; on phone it's an app called calendroid, although I get the same behavior with the HTC stock calendar that shipped with the phone).

Just downloaded a different calendar app to phone and had same problem. So it must have something to do with the way Android 2.3 parses .ics vs. the way Android 4.0 does it.