It appears that the ntp.conf file in the xntp3 package shipped with RH 6.0 contains a stray character. In previous versions of Red Hat, the file read, in part, fudge 127.127.1.0 stratum 0 Now, however, it reads: fudge 127.127.1.0 stratum 10 Nonetheless, the comment block above this line continues to speak of using stratum 0. I suspect the new version of the file to stem from a typo. If I'm wrong, the comment should probably be updated to reflect (and perhaps explain) the change.
The change was made so that machines without a reference clock did not inadvertantly start honking NTP at stratum 0. The comment, not the configuration, is incorrect. In order to configure and use xntp3 correctly, see the URL http://www.cis.udel.edu/~ntp. Basically you will need to find a reference clock server that will be added to ntp.conf as server your_reference_clock_server Red Hat can't supply a default refernce clock server in ntp.conf because of the number of installed Red Hat systems.