Opps, I figured it out. Turns out that I had a lousy /etc/adjtime file. This file is used and set by "hwclock" to track drift (inaccuracy) in the HW clock. Turns out that I must have run "hwclock" twice in quick succession durring a brief peroid of major drift in the clock. "hwclock" assumed my HW clock always did this, and built a adjtime file to compensate. After clearing that file, doing an "rdate ntp2.usno.navy.mil; hwclock --systohc --utc" followed by a reboot (to see if this all works) shows a MUCH more realistic time.
Bryan