My iCal has behaved very well in handling calendars from my work Microsoft Exchange account up until one of the recent updates from Apple.

The problem

For a few months now (I think after updating to 10.6.5) iCal begins hanging shortly after I sync my calendars. Restarting the program brings all Exchange calendars in offline mode and after making changes, when I hit manual refresh, an error pops-up: “The account currently can’t be modified”

The account currently can't be modified

This is quite ironic as the first feature that Mac Os X 10.6.5 update brings is: “Improves reliability with Microsoft Exchange servers.”

The solution

Tired of clearing the iCal cache, resetting settings and re-adding the Exchange account? The solution is quite simple: run iCal in 32-bit mode.

Identify the iCal app in the Applications folder, right-click, Get Info and make sure you check the “Open in 32-bit mode” option. Close the Info window and restart iCal. Voila! Works like a charm!
Open in 32-bit mode