This problem seems to persist in quantal quetzal,

cmdline:
# ntpdate
13 Feb 12:22:21 ntpdate[30089]: no servers can be used, exiting

syslog:
Feb 13 12:08:49 hostname ntpdate[1245]: no servers can be used, exiting
Feb 13 12:08:49 hostname ntpd[1295]: ntpd 4.2.6p3@1.2290-o Mon Aug 20 14:49:15 
UTC 2012 (1)
Feb 13 12:08:49 hostname ntpd[1301]: proto: precision = 0.978 usec
Feb 13 12:08:49 hostname ntpd[1301]: ntp_io: estimated max descriptors: 1024, 
initial socket boundary: 16
Feb 13 12:08:49 hostname ntpd[1301]: Listen and drop on 0 v4wildcard 0.0.0.0 
UDP 123
Feb 13 12:08:49 hostname ntpd[1301]: Listen and drop on 1 v6wildcard :: UDP 123
Feb 13 12:08:49 hostname ntpd[1301]: Listen normally on 2 lo 127.0.0.1 UDP 123
Feb 13 12:08:49 hostname ntpd[1301]: Listen normally on 3 lo ::1 UDP 123
Feb 13 12:08:49 hostname ntpd[1301]: peers refreshed
Feb 13 12:08:49 hostname ntpd[1301]: Listening on routing socket on fd #20 for 
interface updates
Feb 13 12:08:49 hostname ntpd[1301]: Deferring DNS for 0.ubuntu.pool.ntp.org 1
Feb 13 12:08:49 hostname ntpd[1301]: Deferring DNS for 1.ubuntu.pool.ntp.org 1
Feb 13 12:08:49 hostname ntpd[1301]: Deferring DNS for 2.ubuntu.pool.ntp.org 1
Feb 13 12:08:49 hostname ntpd[1301]: Deferring DNS for 3.ubuntu.pool.ntp.org 1
Feb 13 12:08:49 hostname ntpd[1301]: Deferring DNS for ntp.ubuntu.com 1

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https://bugs.launchpad.net/bugs/157608

Title:
  Adjust Time -> Sync with Internet Time Servers never syncs.

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