Same symptoms here.

sudo hwclock --debug
hwclock from util-linux-ng 2.13.1
hwclock: Open of /dev/rtc failed, errno=16: Device or resource busy.
No usable clock interface found.
Cannot access the Hardware Clock via any known method.

uname -a
Linux delta 2.6.24-17-generic #1 SMP Thu May 1 13:57:17 UTC 2008 x86_64 
GNU/Linux

-- 
hwclock /dev/rtc Device or resource busy
https://bugs.launchpad.net/bugs/325518
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