I encountered the 404 also in iCal last few weeks which either means they changed servers or there is some other sign on problem. Today I just removed the Yahoo Caldav completely and re-entered ...and using the auto function I got a message that the server was not secure and my calendar could be seen by others....so I then tried the manual option and that could not locate a server for my email address which is .......@sbcglobal.net and got the message that a server could not be located for sbcglobal.
Up til a few weeks ago or so sync worked fine with iCal. I had called ATT ....and the agent said he wasn't familiar with Apple software......I swear that there was a point where the sync worked for awhile....but since I don't have other iOs devices to sync with I decided the heck with it.
Looking at other discussions I see the problem goes back to Oct 2012 and others have had conversations with Yahoo and said that Yahoo has engineering problems and they were working on it. I also have recently encountered sign on problems with iMail with pop up that repeatedly requires my password to Yahoo as well. But this is intermittant and probably the imap mail server is overloaded. Someone else suggested using a short (8 character) password...that that may be the problem.
I was just thinking of going to Google Mail and changing my e mail but that would be a pain. Also ATT is supposed to be changing e mail in June ..I read and also going to new designations for POP3 server(s)