In my Settings it correctly shows my date and exact time here for me locally. However at just about 12:35 AM, Thursday, May 8, 2008, I created 6 tasks and a new folder. After creating them and then clicking on "My To Do's", the Date Created for all 6 says May 7, 2008. Not May 8.
So even though my Toodledo settings show my local time zone (EDT, USA), the task creation date is apparently showing a different zone. I can't think of any other reasons.