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datetime.now shows 4 hours ahead of current time CRM 2011 issue

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Hi 

I have a  simple plug-in that appends current date and time to the custom field in Lead Entity ("new_lastwebinarattended") when a user selects an option set field say   "new_abc_option".  What I notice is that, when we update the option set field, the system adds the date and time stamp as:

"abc_event 04/03/2012:1:00 PM" - but it is supposed to show "abc_event 04/03/2012:9:00 AM".  Ie. it always adds 4 hours to the current system time. Ours is set to Eastern and I made the change at 9AM and when I immediately pull the record, the time is always 4 hours ahead.  What could be reason? 

The plug-in uses the code - datetime.now.toString()

From my personal option settings, below are the values

Timezone settings: Eastern EST
Currency: US
Time (under time format): shows 1PM while my system clock shows 9 AM EST. 

Thanks



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