You can add this line to the file /etc/ntpd.conf to see what happen :
logfile /var/log/ntpd

On my Gutsy, I see an error like that :
 1 Apr 08:48:25 ntpd[5642]: couldn't resolve `fr.pool.ntp.org', giving up on it

Because when ntpd starts, the eth0 interface is not yet started (because
of dhcpd), so ntpd just gives up...

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