Ah, if you're not using exchange you have to set this up a little differently. The accounts have to access a shared database of your free/busy info that you set up. See here for pictures and detailed steps.

To summarize:
When in the Free/Busy Options menu under calendar options, the third box “Publish at my location:” needs to be checked to enable free/busy publishing for non-Exchange accounts. The Publish at my location file path is the location Outlook uses to publish your free/busy information. Use your alias (part in front of the @ of your email address) as the file name.

The Search location path tells Outlook where to look for other people’s free/busy information. This is a global setting and applies to all contacts unless the contact contains a different Free/Busy URL.
In order to be able to publish your free/busy information, you need a default search location in the Search location. You may also need to close and reopen Outlook for the free/busy URL to work.

The syntax is for the URL locally would be like this:
file:// in the format:
file://\\server\directory\FreeBusy\name.vfb