We are just in QA for Novell Service Desk 7.0.2. I have set up the Public Holidays for New Zealand and all show as active.
I have made sure all the NZ users have New Zealand as their country attribute (user imports from LDAP) and I can see it in their profiles in Service Desk.
The User Priviledges are set to 'Observe Public Holidays' (incidently also set to yes for Scheduled Vacations and Vacation Reassign and shows vactions booked just fine).
When we look at the calendar it is not showing the configured public holidays on it.
Am I missing something?