Time Service Not Syncing NT Server and XP Clients

Ok I've read and tried just about everything I can find on the subject but
my Windows XP SP2 clients woill not sync with my Windows NT Server. I'm
configured the w32time.ini on the NT server as primary and timesource=yes.
The NT server does sync to another server (w2k no AD) on the LAN (the Master
time server) which gets the time from the internet. The client piece is the
only thing that doesn't work.

I've turned on debug on the client and it says:

ListeningThread -- no NTP service running at 192.168.1.2:123
147893 17:39:08.4956320s - W32TmServiceMain: timeout
147893 17:39:08.4956320s - TimeProvCommand([NtpClient], TPC_GetSamples)
called.
147893 17:39:08.4956320s - NtpClient returned 0 samples.
147893 17:39:08.4956320s - W32TmServiceMain: waiting 1024.000s

Please help. Thanks in advance.