Hey, I'll just add my voice to the matter: there's something amiss with the nano's ability to tell time. At first, the international clocks were wrong, but after I followed another users' suggestion to reset the nano, it worked okay.
But, related to this is the fact that my nano sets off my alarms from iCal at 8 hours off from the time. For example, if I have an alarm set for 1pm, it will set it off at 9pm (still stating that it's 1pm).
Very unusual behavious, but it appears the nano may have a glitch keeping time zones straight, as you all mention.