Does the calendar work in Instant Web Publishing?
No. Instant Web Publishing (IWP) just isn't up to rendering layouts sophisticated layouts that use layered objects. While the calendar interface does not render in IWP, you can make your own simple IWP layouts that point to the calendarís events and appointment records.
Need to see the calendar data on your website?
Consider Zulu which can sync your calendar with Google Calendar; you can then use the sharing options on Google Calendar to embed the syned calendar on your web site. Quite cool.