KVM? Keyboard/Video/Mouse?
Are you using Virtual Infrastructure 3? VMware Server?
I noticed the VMware image shipped for 7.306 is in an old mode (4) and ships legacy VMware tools. These must be updated to work correctly.
Generally, you should never perform a time sync using an NTP client on a VM. Time synchronisation is always handled by VMware Tools accepting time updates from the underlaying host. This is because the clock calculations are generally incorrect since the number of ticks presented by the virtualised hardware is not necessarily the same as the number of ticks presented by the physical hardware. Here's the best practices guide:
http://www.vmware.com/pdf/vmware_timekeeping.pdf
So if you are using ESX, you need to configure NTP on the ESX host itself and let the time be replicated to the guest:
Installing and Configuring NTP on VMware ESX Server
If you are using Server you need to configure NTP appropriately for the host (w32time service on Win and NTPD on Lin syncing against the lowest stratum NTP servers in your region as source from pool.ntp.org). Again ensure you have the latest VMware tools client installed.
Lastly, ensure NTP is disable in your ASG VM.
Hope this helps!