Thank you for report this bug.
I've test in Hardy and it work with locale en_US.UTF-8, but with es_ES.UTF-8
dont't work.
Can you write the output of command "locale".
Thanks.
** Changed in: gnome-panel (Ubuntu)
Sourcepackagename: None => gnome-panel
Status: New => Incomplete
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Time format not changing in Hardy Beta.
https://bugs.launchpad.net/bugs/211658
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