Maybe I am missing the point here but it seems clear to me.

Perhaps I'm the one missing the point, but I think he was saying the opposite of what you interpreted:

Windows computers like to have the timeclock set to the local time.

But we're not on a windows computer. We're on the empeg, which is a Unix computer. And unix computers have their timeclock set to UTC/GMT (which are the same).

The only reason the time looks correct to me is that when I'm in the player software, I have selected the timezone setting. And that timezone setting changes the displayed time to be my timezone (-8 or -7 depending on DST). But the internal clock is still set to UTC/GMT, and that's what his code was sending to the GPS. Am I right?

Now, I suppose there is a chance it could be off by one hour, i.e., we're in DST right now so when I set the thing to US Pacific (which is -8) and set the time, I'm actullay at GMT-7 or something. Anyone know the answer to that particular thing?