CentOS - Jan 2010 - ntpd appears to not be able to query ntp servers automatically?

Hello all,

After reboot, one of my servers running CentOS5 no longer keeps its 
clock synced automatically.  ntpd is running and I don't see anything 
weird being logged.  If I kick off ntpd with 'ntpd -q', it will sync the
clock.  However, if I just rely on ntpd started with 'service ntpd 
start', syncing does not happen.

I previously had:

# Undisciplined Local Clock. This is a fake driver intended for backup
# and when no outside source of synchronized time is available.
server 127.127.1.0     # local clock
fudge  127.127.1.0 stratum 10

and noticed that ntpd would fail down to using the undisciplined local 
clock if I checked with ntpstat.  I commented those out, and now ntpstat 
simply says:

unsynchronised
   time server re-starting
    polling server every 64

Any idea as to why ntpd -q will sync, but otherwise the clock will not 
stay in sync even when the local clock drifts by several minutes?  It 
worked fine prior to reboot.

Thanks,

Ryan