I am having the same issue with Ubuntu 8.04 LTS.

Here's what I did:

0) Check the current time: http://www.google.com/search?q=time+detroit+mi
1) Click System > Administration > Time and Date
2) Click Unlock and enter my password
3) Time zone: America/New_York
4) Configuration: Keep synchronized ...
5) Select Servers: check wuarchive.wustl.edu
6) Click Close

End result: no error and no change to time.

Try two - manual:

1) Click System > Administration > Time and Date
2) Click Unlock and enter my password
3) Time zone: America/New_York
4) Configuration: Manual
5) Click Synchronize Now (the swirly icon to the right of the time)

End result: no error and no change to time.

Try three - the command line:

$ sudo /etc/init.d/ntp stop ; sudo ntpdate wuarchive.wustl.edu ; sudo
/etc/init.d/ntp start
 * Stopping NTP server ntpd        [ OK ]
23 Aug 13:55:16 ntpdate[10661]: no server suitable for synchronization found
 * Starting NTP server ntpd        [ OK ]

Now it is apparent that wuarchive.wustl.edu is not suitable.  Change to
a different server:

1) Click System > Administration > Time and Date
2) Click Unlock and enter my password
3) Time zone: America/New_York
4) Configuration: Keep synchronized ...
5) Select Servers: check clock.psu.edu
6) Click Close

Time is synchronized almost immediately.  I now have the right time.

-- 
time settings: no warning on NTP errors
https://bugs.launchpad.net/bugs/351559
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