The problem happens first time, second time, every time. I pointed the Windows 7 Internet Time Settings at both the IP and local DNS name, neither worked. I then pointed it at one of the clearsdn ntp servers (time1.clearsdn.com) and it worked fine. It does not appear ntpd is answering.
The error is always te same:
An error occurred while Windows was synchronizing with x.x.x.x.