Took me 6 hours but I figured this out. Once it works, it works nicely!
After the SP1 update there was no change in the Sync Services window in Office. So, I reinstalled Office. Then updated to SP1. Now I had the correct Sync Services 3-pane window, but the panes were not populated (nothing to choose; i.e., calendar, contacts, tasks, etc). So I went into Library-Preferences and deleted all the Outlook .plist files. Restarted my MacBook Pro, relaunched Office and clicked on Sync Services. Now the panes were populated, I selected Calendar, contacts, tasks and notes and followed the instructions as per call-151's link (see his post in this thread). Now Outlook syncs with iCal and Apple Address Book, etc.
A few other notes: during this process I opened up iSync and reset the sync history. And I had to deselect sync services in Entourage because Outlook and iCal picked up these calendar entries and I ended up with multiple entries in all applications. In the end I actually deleted the Office 2011 Main identity, restarted Office 2011 and then imported a clean Entourage database to quickly reinstall all of the calendar entries with no duplicates. Hopefully you won't have to do this.
Now with everyhting all cleaned up, I connected my iPhone and in iTunes I saw all of my Outlook calendar categories. Selected all, synced the iPhone and everything was transferred over. Looks great!
Hope this helps.
PS: Adding, deleting calendar entries on the iPhone syncs right into Outlook without any issues...even the right category!