Created patch for expanding problem. You can get it from this merge proposal:
https://code.launchpad.net/~albertsmuktupavels/gnome-panel/lp-1314706/+merge/225089
Can you test it?Thanks. I compiled panel with your patch. Now it's exapnding properly with all events as it used to be.
But then, I found couple of more bugs (sorry for the trouble :\):
1. When I select a day, all all-day events/appointments from PREVIOUS DAY are appearing in it (Screenshot: http://i.imgur.com/niEM6o9.png).It seems all all-day events are extended for two consecutive days, even though, they appear properly in Evolution. Events with time & future-events are not affected.All-day events before PREVIOUS-DAY are not affected as well. (On my pc, Evolution is set use system timezone).
2. Double clicking on any appointment or clicking the edit button is supposed to open evolution-calendar. But it doesn't.
3. When using Ambiance (or any other GTK theme), the background color for any selected date without events uses "selected_bg_color" (#f07746) from "gtk-main.css" as it should be . However for any selected day with events shows light grey. Why? (Surprisingly, this also occurs for indicator-datetime under Gnome-Flashback [compiz/metacity] session.)