Actually, even without NTP in the equation at all, I see the same here.
In a Jaunty Live CD instance, open Preferences > Time and Date and
configure the location to Europe/Helsinki.  Close Time and Date and
observe that /etc/timezone has been correctly updated.  Still, reopening
Time and Date displays the location as Europe/Mariehamn.

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Clock applet consistently displays different timezone after reboot
https://bugs.launchpad.net/bugs/226216
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