I thought about this some more and found a potential problem with moving the ntpd initscript to later in the startup sequence which could have you end up with two ntpd instances.
Connecting through ppp or pppoe will trigger the ip-change event, which includes S90restart-ntpd. This will stop and start ntpd. If ntpd wasn't running, stop will fail, but start will succeed. If /etc/e-smith/events/ip-change/S90restart-ntpd finishes before /etc/rc.d/rc7.d/SXXntpd is called, you'll have two ntpd instances. I suppose you could fix this by making ntpd startup conditional on the absence of the ntpd lockfile by editing /etc/rc.d/init.d/ntpd (make a copy!) and changing
start)
start
to
start)
[ -f /var/lock/subsys/ntpd ] || start
, but that would be yet another workaround without fixing or identifying the real problem, which may or may not be that ntpdate hangs instead of timing out. What do the logs tell you about what the real problem might be?