I'm setting up a calendar file in MKTO, and I notice the time is in EST. Since the event I'm setting up is for 6:00pm to 9:00pm PST time, should I set up the calendar file for 9:00pm to Midnight EST time - or will the time be automatically updated depending on which time zone you open the calendar file in?
You should set it in your own time zone, and then it will show up in recipients in their time zone.
Just to give a little more color (Darrell's description is absolutely right) the calendar file stores the time only once, in UTC. So it's not that the time is "updated" exactly -- nothing ever changes in the file, but the recipient's computer will translate the time based on its current UTC offset.