Calendar Widget is not Pulling Timezone
For some reason the Calendar Widget is using the timezone of UTC and is changing the date of the calendar to the next day 5 hours early. I have checked the setting in WP and it is properly set.
I believe that I have found the problem at least on my server. It was PHP 5.2.10 there seems to be a bug in it that causes core dumps and other errors. I have recompiled to 5.2.9 and everything seems to be working just fine.