Set date & time automatically, Not Working

You might try this:

Use the Finder's Go menu, select the "Go to Folder..." command to open the /etc folder and drag the localtime folder to the trash. A restart or log-out/in may be required to change it.

See if repairing permissions helps.
As a test create a new user account and see if the time in this new account works properly.
Report back.

You probably need to delete your preferences file for date & time. Someone who knows more about it can hopefully post and give you the exact name and location of the file you need to trash. It should be somewhere like <Home>/Library/Preferences/.com.apple.DateTime.plist, or something close to that.

Sorry I can't give you the full $5.00 answer.

Thad

OK, next check the region and calender settings under 'Format' in International Prefs.

If they're OK, it may be necessary to find the .plist file as mentioned above. Unfortunately, I believe all the system preferences are in one file; com.apple.systempreferences.plist which would require all your setup to be re-entered after deleting, so if anyone out there knows a better way, now is the time to come forward!

As an aside, I had a similar problem earlier (in my case the time zone refused to reset) which was only finally resolved when I cloned my system back to the iMac from my backup due to an unrelated fault. Why that cured it I don't know, as the clone was made when the time & date fault was present, so I expected it to remain.

Was having a similar problem with my Mac Mini. Followed the steps in the Finder's go menu and deleted the alias file which went to localtime and now it works ok. Thanks Bruce Etnyre

Is there a time zone selected?