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When sharing calendars if I mark an item as "Private" then users who are viewing my calendar via Outlook (2003 and 2007) cannot see that I am busy during this time. In webmail and iCal it shows busy, but no event details. In Outlook it appears that my time is free. If I check that the person can view my private events, then they can see the details of that event.
Bugzilla
Wiki
Source
Private Events 
Linear Mode
