I have had a similar problem with the current Hardy---but in my case I
couldn't manually change the time---getting a "The configuration could
not be saved" message---looks to be a permissions error--happened
shortly after the last tzdata update. Prior to the update, I could
change the time manually---I turned off the ntp service (/etc/init.d/ntp
stop), then ran ntpdate-debian & time is again running correctly.

** Attachment added: "Screenshot-time-admin.png"
   http://launchpadlibrarian.net/11048526/Screenshot-time-admin.png

-- 
clock is delayed by a constant amount when ntpd is enabled
https://bugs.launchpad.net/bugs/141056
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