Eugene Lazutkin wrote:
The easiest way to handle it is to rely on native Windows time zone: do not set any time zone at all (django\conf\settings.py, line 64). I didn't try it but it should work.

In any case please file a ticket to track the problem.

Thanks for that tip. I did remove the TIME_ZONE setting and it now gives the correct local time, but the UTC offset still shows as wrong ('O' format string for 'now').

I have submitted a ticket:
  http://code.djangoproject.com/ticket/1149

Thanks,
Michael

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