I'm evaluating Ubuntu 7.10 as a possible replacement for 6.06 on
several machines, both actual hardware and vmware machines.

I've had no problems with 6.06 on any of these platforms, however I'm
having two problems with 7.10

The first one is with openntpd. The clock on the vmware virtual
machine drifts quite a bit, despite turning on "Time Synchronization
Between the Virtual Machine and the Host Operating System" in the
vmware-toolbox.

On 6.06 I could use ntpd to sync the clock to a real machine, under
7.10, openntpd reports that it's working in the /var/log/daemon.log
file, but it does not actually adjust the clock. Here is an excerpt
from the file after starting openntpd:

Jan 24 01:11:28 ubuntu-2 ntpd[6644]: ntp engine ready
Jan 24 01:11:51 ubuntu-2 ntpd[6644]: peer 192.168.2.252 now valid
Jan 24 01:12:43 ubuntu-2 ntpd[6643]: adjusting local clock by -2.570948s
Jan 24 01:16:29 ubuntu-2 ntpd[6643]: adjusting local clock by -17.357250s
Jan 24 01:20:17 ubuntu-2 ntpd[6643]: adjusting local clock by -28.203542s
[...]

As you can see, the drift is bad, and the adjustment does not actually
work (which it does with the old ntpd under 6.06).

I've Googled this to the best of my ability, and found other people
with the same problem (on real hardware), but no solution proposed.
Anyone have any ideas? Even though the the clock on my server does not
drift that badly, I still would like to keep it in sync, and it is the
first machine I'd like to try 7.10 on.