Ditto here too, would love some expert advice. This doesn't seem too hard and since there is a lot of forum traffic on this exact topic, it seems like this is possible.
Link I have found to be most helpful so far:
http://www.petri.co.il/share-calendars-local-users-internet-publishing.htm
The problem is that this site explains how to do it in Outlook 2007, but was meant for a Windows XP machine. I am using Vista and did my best to parallel to the WebDav setup in Vista, but to no avail, I get the same error message.
Maybe we can figure this out ourselves.
But one final solution, albiet costly, is to use Gmail Apps Premier, which includes an app to basically mimic MS Exchange. Costs $50/year.
http://www.google.com/apps/intl/en/business/messaging.html
Click on the "sync your Microsoft Outlook" URL for a video. But if we can get it working for free using ISS and only publish locally, then that's the much better solution.
Thanks.