I have the the Outlook set to the exchange server (not a PST). Turns out, I did not have to install a second service, but managed it from the PIM on the users desktop... changing from Outlook to "Wireless Sync.", interestingly, the Calendar from BB1 (Black Berry 1) will send calendar changes to the exchange server, but not the reverse (changes made in Outlook calendar note showing up on the BB1). The communication arrows appear (indicating that the BB1 is receiving data), but no changes are applied. I have setup BB2 with all of the exact same setting, and it works fine... syncs e-mail, calendar both ways. I uninstalled the desktop software (even deleting from REG per BB KB article 002206), installed the software on another desktop, tried it with Outlook 2003 (rather than XP), yet it still does not make changes to the Outlook calendar. Maybe if I put the BB under my car tire....