Use the Help pull down menu from inside iCal. Type 'sync with iphone' in the search field. It worked like a charm. Fixed the issues in minutes. I chose to sync my calander using iTunes (how to listed at bottom of this post).
Here is what the Help search feeds back:
Syncing calendars across multiple computers or devices:
Syncing is the process of updating and sharing information on different computers or devices. For example, if you have calendars on more than one computer, you can sync them so that each computer has the same, latest information.
If you have a MobileMe subscription, you can use it to automatically sync your calendars across multiple computers or devices, including an iPhone or iPod Touch. If you don’t have a MobileMe subscription, you can use iTunes to sync with an iPhone or iPod Touch. You can also use iTunes to sync with an iPod classic, iPod nano, or iPod mini.
To automatically sync your calendars across computers or devices using MobileMe:
Choose iCal > Preferences, click General, and then select the “Synchronize iCal with other computers and devices using MobileMe” checkbox. If the checkbox is dimmed, syncing isn’t turned on.
To turn on MobileMe syncing:
Choose iCal > Preferences, click General, and then click MobileMe.
The Sync pane of MobileMe preferences opens.
Select the “Synchronize with MobileMe” checkbox, and then select from the pop-up menu how often you want to sync.
Select the Calendars checkbox.
To immediately sync your calendars, click Sync Now.
You can’t use MobileMe to sync a CalDAV or Exchange calendar. You must set up the CalDAV or Exchange accounts on each computer you want to use. To sync your CalDAV calendar with an iPhone that has the iPhone OS 3.0 Software Update, set up the CalDAV account on your iPhone.
If you set up a MobileMe calendar account in iCal, your MobileMe calendars are already being synced with MobileMe. To view your MobileMe calendars on other computers, set up your MobileMe calendar account on each computer. For more information about MobileMe, visit the MobileMe website.
To sync your calendars using iTunes:
With iTunes open, connect your iPhone or iPod to your computer.
Click the Info tab (or the Contacts tab), and then select the “Sync iCal calendars” checkbox.
Select whether you want to sync all your calendars or only the calendars you select.
Select any other options you want, and then click Apply.
Your calendar information is updated each time you connect your iPhone or iPod to your computer.