I just did a full migration from Now Up-to-Date to iCal and was successful using a tip obtained elsewhere. The key is to pass the data through Excel and Palm Desktop. Now can't export vCal yet and iCal won't import tab delimited text. However, Palm Desktop can import tab-delimted text and export vCal.
I don't think you can successfuly create multiple iCal calendars from the Now categories going through Palm Desktop; I didn't try that. To make sure it worked out, I did it using multiple export/imports doing one Now category at a time by passing it through Excel. Here's a summary of the steps:
1. Export your date rage from Now in tab-delimited format.
2. Open the export file in Excel, sort by category.
3. Extract all entries for each category into separate workbooks, save each as tab-delimited text file format.
4. Open Palm Desktop and create a new calendar for the category (e.g business, personal, special events, etc.) Save it in a temp place like your desktop.
5. Import the text file to the new Palm Desktop calendar
6. Export from Palm Desktop to a vCal file
7. Create a new calendar in iCal for the category to be imported
8. Import the vCal file into that calendar.
Repeat steps 4-8 for each Now category.
There were some anomolies I couldn't explain (like some single-day all-day events becoming two-day events in iCal), but I just cleaned those up manually.
Repeating events in the Now Calendar will become multiple single events in iCal. Also, if you have any commas in titles or notes, the process of passing through Excell wil put " " around those entries in iCal. If this bothers you, you could pass the saved Excel text files (from step 3) through a text editor (Text Wrangler works best, TextEdit should do it also) to delete the quotes if you want.
Mac OS X (10.4.8)
MacBook Pro Mac OS X (10.4.8)