Can't get iPhone, Outlook and iCloud to communicate

Since I started using iCloud, my iPhone4 calendar no longer shows any of my calendar items only birthdays that are being pulled off Facebook.

My PC's Outlook (2007) entries are no longer in my Local Calendar - only the iCloud calendar tab.

I want all three to have identical calendars: iPhone, Outlook, iCloud.

I sync with iTunes 11.

1) I thought the point of iCloud was that all three would automatically sync, correct?

2) Can anyone tell me how to remedy this?

3) If I delete iCloud, will all my calendar items move back to Outlook?

I'm afraid to do that because I may lose all my appointments, reminders, birthdays and anniversaries.