I too am searching for this answer. So far it seems with all the looking and struggling I have done I have come up empty.
Here is a thread on Market Circle's website
At this point we have moved to manually putting contacts in Daylite and iCloud Address book now it appears we will have to do this will iCal as well. Good luck let me know if you find anything.
I talked to apple and they had me delete my local calendar. However Market Circle called me back to give me the bad news. Daylite can not sync with iCloud at this time.
It can sync with Google Calendar so I am looking in to how that will sync with iCal and then iCloud.