NTP on HP Microserver N54L not working

Hi there. I can see from your ntp.conf file that you have establish the internal clock as a fallback server. Like ryecoaaron mentioned RPi does not have realtime clock so no use in doing that. In my little experience I also have noticed that sometimes ntp falls into the incorrect server (localhost) instead of the correct time server (this happened to me with some Ubuntu servers).

I would recommend you to do this:

• Comment out these lines from your ntp.conf:
  server 127.127.1.0 # Local clock
  

  
  

  fudge 127.127.1.0 stratum 12
  

• Check sync status use cmd: "ntpq -pn";
  
• Make sure the reach value is high (377 is the higher possible value);
• Make sure you get an "*" (asterisk) before the defined server (not the localhost, but the one you want);
• Make sure no other server is present (not even local fallback). The use of a local fallback is known to cause time sync problems due to server misuse by the NTP client.
  

  
  

  Parameters explained:
  “*” (asterisk) = an asterisk should appear before the defined Time Server IP address (192.168.20.1 or 192.168.20.40). It means that is the server being used for synchronization;
  “st” (stratum) = the stratum (st) of the server should be around 2. This has to do with the precision of the time that can be achieved by that server, considering network delays, so it functions like a way to prioritize time servers. Lower the value is, more precision that time server has;
  “when” = timer that counts the time to poll. When the value reaches the “poll” value a poll will be performed and this value reset to 0;
  “poll” = interval in seconds between each poll;
  “reach” = this is an Octal value of bits with the result of the last polls. If you have 377 (1111 1111) it means that last 8 times the polling was successful. If everything is working correctly you should always get 377 from there meaning the timeserver is reachable and stable;
  “delay” = is like a ping command. Basically the time it delays to get the answer from that server;
  “offset” = This is very important value! This is the offset time between your local clock and the time server’s clock. The result is presented in ms so something like 5.xxx is not a big deal at all, but if you have something like +/-5000.xxxx it means you are 5s ahead/behind the clock;
  “jitter” = this is a “standard deviation”. It presents how reliable the polls are. If you have a small jitter it means there is low offset variation between each poll. So this would also be a thing to consider when validating the Timer Server’s stability.
  

Forgot to mention that (obviously) you will need to restart the NTP service after changing the ntp.conf file. If it was me I would first do a "ntpq -pn" to analyze what is happening right now and only made the changes afterwards.