After getting many mails from everyone for getting CiviCRM Events Calendar working by refering my previous  Blog http://www.impossible.co.in/blog/admin/civicrm-events-calender-jquery-pl... , I decided to convert the code in an drupal module, which may be very useful to users to get it working at first instance.

Have released the CiviCRM Events module which uses the jquery plugin fullcalendar .

You can download the module here.  The Calendar is configurable with options like  :
1. Show/Hide End date.
2. Show/Hide Past Events.
3. Restrict events upto particular months.
4. Filter events of Specific Types.

Installation Steps :
Download the Jquery Plugin fullcalendar . and copy the file 'fullcalendar.js' in js folder and copy fullcalendar.css in css folder. You are done, you can see the Events Calendar at /events/calendar.

The module is available for both D6 and D7 version.

Further Modifications / Addition can be adding one more calendar for showing Activities. 

Below are screenshots :