I posted this on the Apple forum and haven't received any replies. I'm hoping someone here can help. Here's what I posted there:
Does anyone here use Google 2 step verification? If so, how have you gotten it to work with iCal? I am doing the steps just as Google says to do them (generate an application-specific password and enter that password instead of my regular Google password) but I keep getting an error message. I was able to set up Gmail in the Mail app just fine with the Google 2 step verification application-specific password. I am not sure why iCal is giving me problems. I have searched Google and can't really find a good answer or a step by step solution. I am running Lion.
I am having the exact same issue right now... 2-step verification is enabled, the mail app works with the generated code, i generated another one for iCal and it's not working... it says the server responded with an error... any thoughts?