Seems to be a bug in TimeSync.nlm in NetWare 6.5 SP7 but let me know what you think.

Before you ask it is running in VMWare 3i (AKA 3.5 ESX) and yes it has an emulated IDE CDROM. It is running VMWare tools.
TimeSync is configured to look to a local server SLES 10 SP2 (running on the same VMWare host, in the same subnet) as the NTP source. It does use a DNS name to find the NTP host rather than an IP address.
The NetWare box is configured as a Single

Every 8 minutes (nearly to the second) timesync looses connectivity giving this message
"Time synchronization has been lost after 12 successful polling loops"

Its always after 12 loops.

Then it re-establishes connectivity after 20 seconds and the game starts again

Note it does not experience any abnormal drift, it just looses connectivity periodically. Network communications experience no issues however
I say abnormal as you must allow for Linux time being more accurate than NetWare i.e. to the 12 decimal versus the 7 decimal for NetWare

Any ideas or thoughts?