This has been a problem for me at least since 10.5.1. I live in San Jose, CA, so my nearest city is Cupertino. When I set this in Date & Time preferences with the PST time zone, my clock is set to 8 hours later (at noon, it's 8 PM)! Other cities in PST give me the same problem. The only ones that work correctly are Vancouver and Los Angeles. The strange thing is that the clock in Date & Time preferences will be correct with Cupertino, but the menu bar clock and all other functions of the OS think it's 8 hours later!
Has anybody seen this and have an idea how to fix?
Steve