I had to apply the hot fix before web services would recognize the CalendarDate Query Option. 1) Click on the Download hotfix link from the link off the resolution KB, and you will be emailed a link to the hot fix for either x86 or x64. 2) You run the hot fix after extracting it, and its a simple install. Reboot IS required.
3) You MUST run the Start -> Programs -> Microsoft Office Server -> Sharepoint Products and Technology Configuration Wizard after the install. It makes some database changes and the binaries to work with the changes must be applied to all servers in the farm.
4) After that, WSS3.0 and MOSS 2007 Web Services will accept the CalendarDate Query Option.