The key elements are:
1) After you create the workflow, you do a "Save as..." this is where you get to name it, but there's a pulldown selection to decide if you want to save it as a "Workflow" or as an "Application". You MUST save it as type "Application". If you save it as a "Workflow" then it'll just open in the Automator GUI but it won't run. If you save it as an "Application" then it'll actually run whenever it is opened.
2) On my macs, if I select the template to create an iCal action, it doesn't automatically open iCal and let me fill in the details for when I want it launched. Not sure why... but I've tried it on several Macs and they're all the same (even though I'm following Apple's own documentation for Automator which says it's supposed to do that.) HOWEVER... I find that I can get around this by just creating my own iCal appointment, and in the "alert" field, set the alert to "open file". There's a sub-type that will default to "iCal". Click on the word "iCal" and in the flyout menu, select "other". This will pop open a finder window which will allow you to navigate to and select the Automator "application" you created in the above step.
After doing both of these things (making sure it's saved as type "Application" and manually creating the iCal entry via the "Open File" alert option) it does work.
On the advice of another webpage, I added a new calendar to iCal (rather than using one of the default "Home" or "Work" calendars) called "Automator" and used that to schedule the daily recurring event. I then un-check the calendar from the list of calendars to display (this doesn't delete it ... it's still there and it still runs everything, it just hides it so that you don't see the appointment for the various actions you want automator to perform on schedule.)