Group Calendar Problem

I am attempting to use the Group Calendar function.  I am not initially trying 
to schedule meetings, etc.  I just want to use it simply to view Free and 
Scheduled time for a group of employees.

I followed the instructions as best I could and had each employee allow my 
access to their calendar.

When I first displayed the Group Calendar, I saw nothing on the employees 
(including myself).  Everything was greyed out.

I then deleted the members and added them separately rather than selecting them 
from the server address book (using the "new" function instead of "add".  I 
could then see Free and Scheduled time, but only that which exists in their 
Free Time settings in their Calendar preferences.  None of their individual 
calendar entries block out the Free Time on the Group Calendar.

All employees have M-F, 8-5 as available time.  The Group Calendar shows that 
as free time and the weekends as unavailable as expected, but nothing shows 
scheduled during the week regardless of their actual calendar entries.  None of 
their calendar entries are "penciled" or marked as "show as free time".

I am in my Server copy when I am doing all of this and also have the "Copy  
Free time to Local"  turned on in the replicator anyway in case I want to work 
with my local copy.

What am I missing?  Am I correct in assuming that any time slot that an 
employee has a calendar entry for would not be shown as Free Time on the Group 
Calendar?

Thanks for any help/suggestions