Windows 7 machines won't sync time

Solution 1:

Keep in mind that Group Policy may be overriding your local registry settings.

w32tm /query /configuration in 2008 to find out, I can find no equivalent for 2003.

Solution 2:

On your server, how exactly have you entered the peer servers (step 4c in the Microsoft KB article referenced)? If you just typed in the word peers as stated in the KB, that certainly won't do. The entry should be something like: us.pool.ntp.org,0x1 time.windows.com,0x1 some.other.time.server,0x1

You can verify these settings with the command 'net time /querysntp'

If the server is unable to get a usable timestamp from the upstream peer, it will not advertise itself as authoritative to your clients, and the clients may not synchronize with it. I have found that time.windows.com regularly fails to provide usable timestamps to my servers; therefore I do not use it.