I confirm the bug.
 
 Default ntp.conf in gutsy has `nomodify` set for all hosts. This will prevent 
ntpd from synchronizing time with these hosts. Either default options should be 
changed or GUI should add saner options for the time servers it adds. 
Presumably then people who edit ntp.conf by hand should be able to figure this 
out by themselves.
 To Fred - `ntpdate` requires a time source as a parameter. Always had. 
ntpdate-debian is a wrapper script that tries to parse ntp.conf, get time 
sources from there and call ntpdate with the server name/IP from ntp.conf.

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Adjust Time -> Sync with Internet Time Servers never syncs.
https://bugs.launchpad.net/bugs/157608
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