Quote:
I then go to the Configure Publishing and Subscriptions menu in the project, chose the people, assign the iCal calendar to the person, select 'events are off hours'....and nothing.
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If you were able to Update without error, and the tasks are still on "off" days, could you double check the Calendar View, select the resource in question, and click "Extra & Off Hours" in the mini calendar? This will confirm that the events are coming in properly.
Hope this helps,
Joel R