Public bug report changed:
https://launchpad.net/malone/bugs/35423

Comment:
I haven't rebooted for almost a week, but I rebooted today and the time is 
fine. It is showing the actual time now.

[EMAIL PROTECTED]:~$ sudo hwclock --localtime
Password:
Wed 29 Mar 2006 04:28:55 EST  -0.617787 seconds
[EMAIL PROTECTED]:~$ date
Wed Mar 29 15:29:03 EST 2006
[EMAIL PROTECTED]:~$ date --utc
Wed Mar 29 04:29:05 UTC 2006
[EMAIL PROTECTED]:~$ cat /etc/timezone
Australia/Sydney
[EMAIL PROTECTED]:~$

I did not yet change the /etc/default/rcS UTC option and still reads as follows:
# Set UTC=yes if your system clock is set to UTC (GMT), and UTC=no if not.
UTC=no

I have absolutely no idea what has fixed it, but I'll leave the rcS as it is, 
and comment back here if time goes stupid again.

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