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The way in which SQL Server has treated Time has been a very misunderstood subject for as long as I can remember. The largest part of that was the fact that SQL Server was only accurate to 3.33ms. I would like to point you to an excellent article on this and other details surrounding Datetime in SQL Server by Tibor Karaszi found here:  http://www.karaszi.com/SQLServer/info_datetime.asp  Well now with the release of SP3 for SQL Server 2005 (and of course SQL 2008 as well) SQL Server no longer uses the inaccurate techniques associated with the RDTSC component of Windows. Since there is a lot to explain about how this all works I will again point you to another link which goes into much greater detail.  http://blogs.msdn.com/psssql/archive/2008/12/16/how-it-works-sql-server-no-longer-uses-rdtsc-for-timings-in-sql-2008-and-sql-2005-service-pack-3-sp3.aspx  I for one say it is about time:).




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