We have one domain with OU's for each geographic site. We have five physical sites; one in Asia, two in Europe, and two in the U.S. (not sure if this might have any bearing on the situation).

One site in the U.S. is having problems with client PCs keeping accurate time. The domain controllers (there are two at this particular site) at this site are keeping time just fine.

All other sites are not having any time issues, with either DCs or clients.

I created a GPO for the OU of the U.S. site having time problems. In it, it tells the clients to sync up with one of the DCs at their site. This has not helped.

My first question - what could be causing this problem?

My second question is a general one. Is NTP setup domain wide, or is it handled site by site via local domain controllers?

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By default, DC's will sync their time with the DC that holds the PDC emulator FSMO role. All other member computers will sync with their authenticating DC. Do you have Active Directory Sites and Services set up for all of your sites. – joeqwerty Nov 28 '11 at 17:30
Yes, we do have ADSS set up for each of our sites. – Citizen Chin Nov 28 '11 at 18:57
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