I have Time Zone support enabled AND the correct time zone selected. I've tried syncing it both ways.
To clarify: The wrong date is showing up in the CONTACT entry and NOT the calendar. All of my calendar entries are correct. Outlook has created an annual recurring event for their birthday and this shows up on the correct day in the calendar. However, on the Contact Birthday field the birthday has been shifted. I am NOT experiencing any hour shifts in my calendar appointments or anything. It appears to simply be birthdays in the contacts. If I correct it on the iPhone, it becomes wrong on outlook and vice versa. Oddly enough, anniversaries which are listed in my contacts are listed CORRECTLY! It's just the birthdays. I'd be more okay with this if it were making me younger by a day, but it is making me older, and that's not cool. 😉
--Michael