Daylight saving changes push time 1 hour forward

[Quadnet]

This is a win2003 domain. Main DC (running PDC master) has an external clock to sync from and all other systems sync from this DC.
This starting to happen a month ago and still can't figure out where the problem is.
If we use the Daylight.. option on the DC the time goes 1 hour forward (even if I manually put the time 1 hour behind, initially the time is right, after a min the time goes forward again)
The only solution to keep times stable is to un-select this option on all systems.
The problem is that all emails have an hour difference between time sent vs time received for emails coming from the outside: time received will be right but time sent will be one hour behind

Updates for win2003 and exchange 2003 sp2 are applied

Any ideas?

 

[dearingkr]

Everytime I've seen this problem, it was because the Time Zone was not set correctly.

MCSE CCNA CCDA

 

[Quadnet]

Time zone is GMT (London)
I've already tried changing to a different zone and reverting again to this one with no luck.

 

[kmills]

Quadnet,

When I ran into this problem, I discovered the external time server was no longer working. I changed to a different external time server -- problem solved.

 

[Quadnet]

I've tried 2 so far, both are pingable:
weevil.pwns.ms and weta.pwns.ms
Both based on the UK (i believe)
Same result

 

[Quadnet]

I tried now a third one: ntp2c.mcc.ac.uk, same result, if I select the daylight... option then I can sync the time (via w32tm /resync) no problem, but a minute later the hour will go forward.

 

[Quadnet]

I forgot to mention that all servers (but the ISA server) in our environment are VWWare virtual servers.
The physical servers are hp proliant blades with ESX 3.0.2 installed on them
Could this have something to do with it?
(i've already checked the time on the esx and it points to the same VM DC)