Create automatic calendar

Do you know, this is something I've been meaning to set up for ages!

Take a look at the attached. It uses the inputs in the top to calculate the first day of the first line AS A DATE. I've separated out the calculation using WEEKDAY, and the calculation of the first day of the chosen month, so you can see what's going on. The dates are all then formatted with custom format d, which just puts the day number in, but the joy is, you just need to add one to it each time. I've also added in conditional formatting to turn any dates outside the current month grey...

NB Your profile says Excel 2003, but you've attached a 2007 book - please could you update your profile so people can help you more appropriately.