I think it may be fixed now, we'll see. I have installed a not yet completed module that is supposed to be handling the time zone info better, Date.

http://drupal.org/project/date

**UPDATE**

It was late when I wrote this. The time zone portion seems to be working correctly, the only thing I don't like is that the time stamps seem to get updated site-wide. For instance, if I wrote a blog entry a couple months ago at 7:00 AM, it will now appear as 8:00 AM because of DST. The way I understand it, drupal saves the time stamp in UTC, then converts it for display using an offset. I think the Date module looks like it is correctly identifying the DST information for the current time, but it doesn't look like it can determine whether or not DST was in effect on an older date. I may be wrong, but looking at some of my older entries that I know I wrote before I went to work, they look like I wrote when I would have been at work. I guess this thing is no huge deal, but it is nice to know when things actually occurred, especially in the logs.