I really don't want to rewrite the code but am only allowed to give NEW users rights to create events...what happened to exisiting users? I cannot find anywhere where to update the accounts with this permission, also we can create the events but nothing shows on the calendar...any ideas?

If you followed the instructions there should be options under user permissions to allow groups to post events both public and private.

As far as events showing, you have to set the colors and other calendar options under the options section of the control panel.