Cannot Subscribe... verification failed .ics subscriptions...
I have found the issue... it turns out that the .ics format uses a MIME TYPE of "text/calendar" and by default Windows 2008 (and probably others) lists the MIME TYPE for .ics files as "application/octet-stream"... that was the problem... I just changed the MIME TYPE for the .ics extension in IIS to "text/calendar" and it is now loading fine on my phone!
This is likely the issue many other people are having when you have problems subscribing to .ics based calendars on the iPhone... I hope this post helps some of the other people out there.
iPhone 3G, Windows Vista