DOH, I see a statement error up above. I remember our logs being off, and I believe they were off by 8hrs (not three as stated above!) So we found to get our field notes to post correctly, we fudged our GC.com setting timezone to be equal to actual local + 8. Since we are GMT-5, this turned into -5+8 which is +3. With our GC.com setting at GMT+3, and our iPod set to true local time, all our logs have been submitting with the correct timestamp. I don't know what other effects this might have on our account, but I haven't noticed anything yet.
I know it worked for us, I would be curious to see if anyone else had luck with it....
I understand the issues Groundspeak is having trying to match a new technology (smartphone) with a 13 year old website. I have been using this method of pushing my timezone to +3 for my area and it has been working. I do not see any other effects. Until GC can build a whole new web database, I am happy with this work around.