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PDC Time Server keeps moving back 1 hour

I support an 11 server network running Server 2003 with clients in multiple geographic locations. Synchronizing my time service has never been a problem, until today. Out of the blue at about 3pm my PDC/Operations Master/NTP Server's time lost 1 hour. Please bear in mind this is a function I have not had to change for over 2 years. The only new item in the last year is the PDC, but it has been in place since September 2011.
The time zone is Eastern
All of the other servers and clients time settings are NTP5DS so they respect the domains hierarchy. The time servers were configured in the PDC's registry.
HKLM\System\currentcontrolset\services\w32tim\parameters\NtpServer:tick.usno.navy.mil,0x1
HKLM\System\currentcontrolset\services\w32tim\parameters\Type:NTP
HKLM\System\currentcontrolset\services\w32tim\Config\AnnoounceFlags:5
HKLM\System\currentcontrolset\services\w32tim\TimeProviders\NtpClient\SpecialPollInterval:(900)
HKLM\System\currentcontrolset\services\w32tim\TimeProviders\NtpClient\SpecialPollTimeRemaining:tick.usno.navy.mil,7bf0caa

So far the only thing I have done that stops it from rolling back one hour is when I change the settings to NTP5DS and stop the w32time service. I really want this to keep synchronizing from an Internet time source.

Any ideas?
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Paka

Windows keeps time in UTC format and then applies a +/- offset for humans depending on what time zone you specify.  

If you type net stop w32time and net start w32time - what shows up in your event log?  

Also, do you have Automatically Adjust clock for Daylight Savings Time selected in your time zone settings?
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toytalk

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