I am looking for a way to use my server to set the time for 10
connected workstations.
The server is a windows 2003 server Operating System. The server IS
connected to the internet via one network card. The workstations are
windows XP professional and are connected to a switch and the switch
is connected to the second network card in the server. There are no
domains on this network, they are just part of a workgroup.

how do I get the server to send the time to the workstations?
how do I get the workstations to accept this time?

Here are two methods to do this:

1.  Dirty Batch File Method.
http://www.windowsnetworking.com/articles_tutorials/nettime.html
Run this command from a work station and it will set the time to that
of your server.
net time \\<server name> /set /yes
You can set this to run as a batch file in your startup folder so that
you synchronize every time you login.  If you are unfamiliar with
batch file you can get started here:
http://www.iopus.com/guides/batch.htm
Create a file called time.bat with these two lines inside:

net time \\<server name> /set /yes
cls

Copy it to:
<C:\Documents and Settings\All Users\Start Menu\Programs\Startup>
This will force it to run when anyone logs in.


2. Windows Time Services Method
http://www.microsoft.com/technet/prodtechnol/windowsserver2003/technologies/security/ws03mngd/26_s3wts.mspx

First you need to be sure the Windows time service is started on your
machines.  It should be started already.  All the quotes below are
from the Microsoft article above.

Starting and Stopping Windows Time Service
"By default, Windows Time Service starts automatically at system
startup. You can, however, start or stop the service manually by
accessing services in Administrative Tools or by using the net
command."

Next change this registry key to the name of your 2003 server:
<HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\W32Time\Parameters\NtpServer>
It should currently be set to "time.nist.gov" or something similar.

Also make sure that the key named ?Type? is set to ?NTP?.

There are other keys you can modify to designate how often they update
and some other things.  The Microsoft article has the options listed. 
It is the table entitled:
"Group Policy settings for configuring the Windows Time Service NTP
Client for computers running Windows Server 2003"

You will of course want to be sure that your server is synchronizing
with an external source.  It should be already.

Please let me know if you require any further information or have any
questions by posting a request for clarification.

Thanks!

I still could not get it to run in the registry - kept saying there
was an error with sync, so I used the 'dirty method' which worked
perfectly. thanks dude.

No problem!  Thanks for the stars.