UPDATE: Take a look through the rest of the posts before you work too hard. There are some important tweaks.
I posted this in the Tips and Tricks section of the forums, but since that doesn't seem to get a lot of traffic I thought I'd double-post it here. Hopefully that isn't a big deal.
I've seen a few people wondering how to do this or if it is even possible.
I've found a program that will import data from a text file (the only export type Now has) into iCal. It is called iCalTextImport. It is a shareware utility but it seems to do the trick.
Take a look, and if you have any questions let me know.