I have always had trouble with the clock in SME and have found that using the noapic directive in grub.conf will fix the clock so it keeps time.
However, with SME 7.4, I still need my noapic directive for the clock, but that directive now stuffs USB and USB drives won't accept an address. Remove the noapic directive and USB works, the drives accept an address and can be mounted, but the clock skips ahead badly. Catch 22.
Why do I need the noapic directive to make my clocks run on time? All my machines are AMD boxes.
This is not related to virtual machines at all, they are all hardware boxes.