Yes, the current time zone is cached. For a good reason, it avoids trouble with broken code that uses DateTime.Now to implement elapsed time measurement. Such code tends to suffer a heart-attack when the time suddenly changes by an hour or more.
You will have to call System.Globalization.CultureInfo.ClearCachedData() to reset the cached value. The next call to DateTime.Now will now give the new local time. If you use the .NET 3.5 TimeZoneInfo class at all then you'll also need to call its ClearCachedData() method. You can use the SystemEvents.TimeChanged event as a trigger.
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