I started work on increment 1, which I planned as part of my internship. The next 3 weeks (including this one) I will be sorting through the application and try to capture it in different UML schemas. After I mapped the whole application (as far as it will go) I'll try to refactor the Month View to prepare it for AJAXification 
The past two weeks I managed to get some general refactoring done, including the Event Add/Edit Form, the Calendar Add/Edit Form and the Application Settings Page. These changes are all commited to the svn server.
I hope to fix a few bugs along the way during increment 1, because a whole list of bugs is still open. And they are all assigned to me 
Feel free to check my progress at the Developer Wiki. You can find the first version of the schemas here.