hwclock would complain at startup regarding /dev/rtc when running with recent kernels -- e.g. for 2.24-alt2 / 2.6.26-wks-smp-alt0.7: hwclock: ioctl() to /dev/rtc to turn on update interrupts failed unexpectedly, errno = Inappropriate ioctl for device (25). Both error message and lakostis@ recommend --fast option. Maybe it's time for that by default?
Even with FAST=true hwclock --adjust complains, because it isn't executed with $CLOCKFLAGS
Try with fresh hwclock/startup versions.
Danke sehr!