Well after fighting Dotnetnuke's Active Directory functionality all morning I decided to make available my changes.
Basically I changed the way Dotnetnuke handles the time zone of a new user creation. By default a new user is created so that their time zone is always set to -8:00 GMT. I modified the source so that now the time zone of a new user is set to the time zone listed in the Admin Settings section of the site.
I think this is a must change for Intranet sites out there, especially if you are using the Events module.
WARNING this change, changes the source for Dotnetnuke. It only works on DNN 3.3.2. It is painless to install and really won't change the way your site works in any other way. The download includes the source.
You can obtain this fix by going to http://www.getyourowntots.com/Projects/DNNModules/DNNADTimeZoneFix/tabid/97/Default.aspx
Stuart