Inelegant workaround
I didn't like any of the separate 'solutions' for syncing to-do's in iCal w/ iPod or iPhone so what I do is create a new Event, name it "Call - Mr. Jones" or "Email - Bill" or "Get Milk" or whatever the to-do is and then check the all-day box in the event detail.
You can set reminders, enter notes, anything you can do for a regular "Event". They all appear at the top of the day and they are easy to keep track of.
Yes, you do lose some of the exclusive functionality of real "all-day" events but not a bad trade off. I can figure out the difference between "Call - Bill" and "ABC Trade Show" or "Fly to Hong Kong". Plus if you use different colors for things, this is easy.
Anyone else do this?