Well, might as well add myself to the list.
Got the same problem as you all. But I don't sync via ITunes or via usb. I sync via push directly over 3g to our corporate servers (Exchange 2003) and the problem is there. (Shouldn't this exclude ITunes?)
When I edit a contact in my Outlook 2007 and wait for the sync to happen my contact on the IPhone gets a birthday offset by minus 1. Now, if I edit a contact on my IPhone and wait for the sync to hit Outlook, it gets offset by + 1. 🙂 Interesting.
All my calendar entries are correct, both in Outlook and on the IPhone. But most of my contacts have an offset birthday.
Either there is, as has been pointed out here, a problem related to DST or there is something lurking under the hood with the Active Sync implementation.
What's scary about this is that Apple is not looking into it - from what I can gather reading these posts.
Anyways, let's hope for a fix. 🙂
Ulf Thomas