So, you're saying the times that were displayed on your lifestream remained the exact same even after you changed the timezone in WP/Profilactic Options!? Now that's odd!
1) Are you using any caching plugins? Also, are you sure the browser isn't showing cached data?
2) What values are you using under the "Timezone" and "Time Format" options?
3) Exactly how many hours is the time off by?
4) Do you have any other plugins installed that use a timestamp and work correctly? If so, can you send me the name of the plugin.
This plugin uses a standard php function (gmdate(), which works in PHP4 and PHP5) to pull the time values from the profilactic feed and format it according to your preference and timezone under the Profilactic options page. I just verified it again and everything checks out on the server I tested it on... Additionally, if you have the SimplePie plugin installed, then the function that gets called is slightly different (still, it is parsing the time from the profilactic rss feed). So, that would mean we are parsing the time two different ways and still getting the same results... which would lead me to believe it isn't (directly) a plugin issue.
5) Can you try installing/activating the SimplePie Core Plugin and see if it gives you the same results?
6) If you open your profilactic feed in an rss reader, does it show the times accurately?