FULL PRODUCT VERSION :
java version "1.5.0_06"
Java(TM) 2 Runtime Environment, Standard Edition (build 1.5.0_06-b05)
Java HotSpot(TM) Client VM (build 1.5.0_06-b05, mixed mode, sharing)

ADDITIONAL OS VERSION INFORMATION :
ver XP SP2

EXTRA RELEVANT SYSTEM CONFIGURATION :
Netbeans 5.0 DELL Inspiron 9300 Centrino 2.1GHz 1 GB RAM

A DESCRIPTION OF THE PROBLEM :
  Bug exists but has been closed: http://developer.java.sun.com/developer/bugParade/bugs/4814012.html

This problem still exists. We are running a multithreaded application that is CPU intensive and find that the system clock runs out by a few minutes each hour. Network time controllers reset the System Clock and the app is unresponsive until the clock catches up to the previous time. Threads spin inside the Thread.sleep state and timers do not fire. The app is heavily time dependent and the unresponsive state is unacceptable from a customer and performace perspective.

The example in the bug listed above show clock increases of about 15ms per minute. It only occurs if both worker threads are running in the example from the buglist. It still occurs if the threads sleep for more than 10ms. Appears to stop if the sleep interval is increased to 20ms, but could appear in longer test runs (untried).

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
Run the example listed in http://developer.java.sun.com/developer/bugParade/bugs/4814012.html

Also happens when main thread time is reduce to 60 seconds not 10 minutes.

Appears to be an issue when CPU is under heavy load >50%.

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Expected the reported time taken to match the Thread.sleep interval on the main thread.
ACTUAL -
Worker thread sleep time, Main thread return time, Expected return time, Delta

1ms, 60047, 60000, 47ms
10ms, 60016,60000,16ms
15ms,60015,60000,15ms (all high CPU usage >50%)
20ms,60000,60000,0ms (low CPU usage <10%)
25ms,60000,60000,0ms
30ms,60000,60000,0ms



ERROR MESSAGES/STACK TRACES THAT OCCUR :
No crash.

REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
/*
 * SleepTest.java
 *
 * Created on 22 August 2006, 11:22
 *
 * To change this template, choose Tools | Template Manager
 * and open the template in the editor.
 */

/**
 *
 * @author chornby
 */
public class SleepTest {
    public int launchThread(final int id, final int sleepTime) {
        
        // Create a new thread object
        Thread t = new Thread(new Runnable() {
            public void run() {
                // Loop forever
                System.out.println("Starting " + Thread.currentThread().getName());
                while (true) {
                    // Print the ID
                    //System.out.print(""+id);
                    // Do some processing
                    for (int i=0; i<1000; i++) {
                        for (int j=0; j<1000; j++) {
                            double x = (double)i * j / j + i - j * j;
                        }
                    }
                    // Sleep for the amount specified in the sleep time
                    
                    try {
                        Thread.currentThread().sleep(sleepTime);
                    } catch (InterruptedException e) {
                        ;
                    }
                }
            }
        });
        // Start the thread
        t.start();
        return 0;
    }
    
    public static void main(String[] args) {
        // Create a Thread that will print the ms time every 30 seconds
        Thread timer = new Thread(new Runnable() {
            public void run() {
                // Print the begin time
                long start = System.currentTimeMillis();
                System.out.println("Start time: " + start);
                try {
                    // Sleep for 10 minutes
                    Thread.currentThread().sleep(60000);
                } catch (InterruptedException e) {
                    ;
                }
                // Print the current time
                System.out.println("time: " +(System.currentTimeMillis() - start));
                System.exit(0);
            }
        });
        // Start the timer thread
        // Remove this line of code when it is not desired to stop the app after 10 minutes.
        timer.start();
        
        // Create a new test base object
        SleepTest tb = new SleepTest();
        
        // Launch a thread with a 5 ms sleep time
        tb.launchThread(1, 5);
        
        // Launch a thread with a 10 ms sleep time
        tb.launchThread(2, 5);
    }
}

---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
None found. One would be most welcome! AFAIK the suggested workaround -XX:+ForceTimeHighResolution does not work on JRE 5?