Problem resolved, and I can now see the other replies, strange.
Anyway, make sure you have a back up copy of your address book and iCal. Use the Export feature to make a back up.
This is what I did to finally resolve the problem.
Go into System Preferences and open "Mail, Contacts & Calendars". Remove all accounts, use the - box.
Go into System Preferences and open "iCloud". Make sure that you have the screen that asks you to sign up for an account. DO not do this yet.
Open Mac Mail and Preferences and remove any accouts that are still showing up so your Mail is completely empty.
Reboot your Mac. Check all the above to see if any accounts have been automatically reinstalled or set up. If they have remove them again.
Reboot again and do the same thing. Once no accounts are showing open you iCal and import the file you exported earlier. This will restore all your appointments in iCal on your Mac.
Reboot your Mac. Make sure that all the iCloud and email accounts are not there. I had to do this 3 times, for what ever reason my old MobileMe account continue to be added back to "Mail, Contacts & Calendars". Once everything is clean and you have all your appointments in iCal, reboot again.
Open Preferences and open "iCloud". Add your primary iCloud account and just wait for everything to finish installing. You should see 2 sets of appointments in iCal. Click on the Calendars button in the upper left and uncheck the box under the heading that does not say iCloud. This does not remove any of the appointments it just hides the ones that are on your Mac and then shows the ones that are on the iCloud Calendar.
One last thing. In iCal open Preferences form the iCal dromdown menue. Under the "Default Calendar" option make sure that you have the default calendar related to the iCloud Calendar checked. If you do not when ever you create a new appointment on your Mac you will be creating it in iCal and two things will happen. First all your iCal appointments on your Mac will show up again and secondl, that appointment will not show up in iCloud Calendars so it will not migrate to your other devices.
Apple should give some thought to having the iCal and iCloud Calendars merged so there are not seperate sets of appointments. I know there must be some reason for doing it the way they did but if someone is going to be using iCloud what would be the purpose of having a seperate set of appointments on your Mac that you have to hide and then worry about entering a new appointment that may not migrate to iCloud if you happend to se that appointment up in the iCal list instead of the iCloud list.