Hi--

On Mar 19, 2010, at 12:39 PM, Ramesh wrote:
> I am trying to synchronize the time of my VM server with ntpd.

You didn't mention which time of VM you are using, but normally it is better to 
run ntpd only in the "host ESX" for VMware, Dom0 for Xen, etc.  See:

  http://xen.epiuse.com/xen-faq.txt
  http://www.nabble.com/Unable-to-set-system-clock-on-domU-td22042252.html

> I have the following configuration.
> 
> And in the /etc/ntp.conf, I have the following line:
> 
> restrict default ignore
> restrict 127.0.0.1.
> server time1.server
> server time2.server
> 
> Whenever I have this line, the server is not able to synchronize its time... 
> So far as I understood, this line prevents other servers using this machine 
> as a time server. And the second line says to allow localhost to use as time 
> server.
> 
> But why do I need to use its own time server when I have specified to use 
> time1.server and time2.server ? ( firewall for tcp and udp ports 123 is open)

You need to add restrict lines for each host that you don't want the default 
restrict line permissions to apply, such as:

  restrict time1.server
  restrict time2.server

Regards,
-- 
-Chuck

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