1. After clicking the New Activity link from any of the calendar views (Month, Week  or Day), or clicking a "time" link on the Week or Day view, you will be prompted to search for or create a new contact to schedule an activity for.

2. After creating a new contact or entering search criteria, any contacts found will be listed and each will have a drop-down containing the activity types you can schedule. Select one of the activity types and click the Schedule button to open the Schedule Activity page. After entering the activity it will be displayed in the calendar.