JKB STM's dashboard

I and my wife are both not able to sync Outlook 2003 with iPhone calendar. It worked for the first 6 months fine, and Contacts still sync fine. We both have a new 3G, I sync with a Thinkpad T60 and she with a Dell 8400. This problem started sometime after the latest iPhone upgrade was installed. Both my wife and I have spent hours (5+) on apple support lines separately and together trying numerous ways to fix the problem. It is as if iTunes does not even see my PST file for calendar, or is syncing with a blank one somewhere.

My latest attempt, after dozens of attempts directed by Apple, was as follows (also suggested by apple):
1. Restored my PC to factory state wiping out all software and data with the operating system returned to state as it came from the factory (Dell)
2. Updated XP, Office Professional 2003, Norton 2009, etc.
3. Made sure there was only one PST file on the PC (backups on portable HD) and in proper MS Outlook directory, Outlook Database checked and compacted.
4. Installed iTunes. Reset sync history. Made sure no former Apple or iTunes data or preference files on PC.
5. Wiped iPhone 3G to original State out of the box. Changed device name.

My intent was to get as close as possible for both PC and iPhone being brand new and ready to sync for the first time.

It did not work. Everything synced but calendar. My calendar is blank. This will not work for me, or my wife, and all my friends that have been thinking of getting an iPhone are holding off. It seems many users have sync problems with calendar, or contacts. I never had this problem with my Treo devices for the 10+ years I used them.

It seems to me the software has a problem, and I wish Apple would acknowledge it. I wish we had the option to point to the exact PST file and calendar/contacts/etc. Will this be fixed in version 3.0? How long do we have to wait. Our problem is now two months or so old. Looks like there are hundreds of other on this supprot site that have a similar problem.