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RHEL 4.7 VM Time/Clock too fast

I am running two RHEL 4.7 virtual machines on a WIndows 2003 R2 64 Bit Server using Mircosoft Virtual Server 2005 R2. Each of the machines time is running excessivley fast. I have installed an implemented ntp but even that cannot keep up with the difference.  The time on the host server runs fine. Does anyone have any suggestions on what the cause could be?
/etc/sysconfig/clock
 
ZONE="America/New_York"
UTC=false
ARC=false

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