Because ofthe nature of CPU thread splicing/sharing I dont feel relying on a service within the child partition/guest provides the best solution or most accurate time rseults and would recomend contrary to this tehcnet article. With a hypervisor host properly setup, using integration tools would provide much more accurate time with alot less drift overall, and would only require minor modification to the Domain Controller in order to function properly.
For those curious, the root problem is that the w32time service AND the Integration Tools attemptign to fix the clock on the child partition at the same time can cause abnormal swings in time in excess of 5 minutes which will break Kerberos and thus replciation/authentication for the DC and general annoyances all around. However, DCs (along with other roles out there like cluster services) require the w32time service to be running.
The better fix is to modify HKLM/System/CurrentCOntrolSet/Service/W32Time/Parameters/Type and change it from "NT5DS" to "NoSync" so that the time server still participates as a valid time source but doesn't attempt to actually synchronize time, trusting it's clock and thus the Integration Tools. Then you simply modify your Hypervisor to use a reliable source and not Domain Time (to prevent a possible time-lookup loop).
Doing it this way is only slightly more involved than clearing a checkbox in integration services but puts an RTC back into the equasion and thus creates MUCH more reliable time less succeptible to drift due to over-subscribing your CPUs on the host.
At the minimum this should be listed as an option IMO.
==============
It seems that this comment and recommendation is based on the assumption that the domain controllers hosted on the virtual server as well as the virtual server are all part of the same forest and need to be synchronized to a single common clock. If that is indeed the case, configuring the time service as discussed here seems like it would work. However, the product team wants our documentation to recommend that the domain controllers synchronize their time from only the domain time hierarchy and not the virtual host. This prevents a time drift from a virtual host from causing infrastructure time drift issues (as those cited previously). Also, if you contact Microsoft Customer Support Services (CSS) and a time issue appears to be a suspect related to an issue you are having, they will likely tell you to disable host integration services and synchronize with the time hierarchy (as recommended by the product team).