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Virtual Server NTPD

We have a virtual server and I am attaching screenshots of the Time Configuration.   An outside vendor set up the virtual machine for us with Esxi and I wanted to know if this config. looks like it should of do I need to have something in the NTP Settings (last screenshot in the attachment)?
NTP.doc
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Seth Simmons
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We had an external IT audit and one of the exceptions says:

VMware ESXi Server 4.1
Critical Problem
 If this vulnerability is present, a remote attacker could gain root access to an affected system.
 [http://www.ntp.org/downloads.html] Upgrade to NTP 4.2.4p8 or higher, or upgrade as designated by Linux vendor. To find out if your version of ntpd is vulnerable, enter the command: ntpq -c version

This is not Linux box???????    I am confused.
What version of ESXi 4.1 are you running?

which build number?

This scan may not be applicable to ESXi, or this issue could have been fixed by a later release.
Version 4.1.0
Build  348481
I would update to at least ESXi 4.1 Build U3, and re-run the Audit.
I would like to update but is there anything special I need to be aware of by doing updates to ESXi 4.1?     Or like other updates....Is it straight forward, I just need to download and run the update?
Just download and run the update. Please ensure you have valid backups (not snapshots before you make any changes to a production server)
..
Do you still need help with this question on applying the update?