I figured time zones would be difficult to diagnose without the actual data. I'd rather not share the links to my icals here.... but I'd guess any ical from calendars.office.microsoft.com (the default cal publishing service in Outlook 07+) would
have the same issue.
I found a workaround to this issue though. As I said in my post above, I am viewing my work ical in my Google calendar account so that my work events will show on my personal calendar.
On Google Calendar, it's possible to then turn around and publish that imported ical so you could link it into another ical viewer... such as WLCalendar gadget.
Settings > Calendar Settings > Calendars > click the calendar name in the list at the bottom > ICAL button.
So now I have the calendars.office.microsoft.com version of this ical which has +0 GMT offset.... and I have the Google version which has the time zone corrected to Central time - which matches my main Google cal and my PC's time zone setting.
Long story short, the gadget is working beautifully now polling those two Google icals.