Thanks I fixed the crystal and the battery as suggested. When I re-ran I got the same results. Year still 1980. I then browsed the RTC class in GHI.OSHW.Hardware and saw the Initialize method. Then I added the call to RTC.Initialize and then the date was set. Year now 2012. Then I played around with the methods and I now am not sure if I really need the call to Initialize.
BTW: I think the crystal was not seen by the cerbuino until I soldered the legs to a wire. Thanks for the suggestion Aron!
So Now I realize the year is correct but the day is not. It is exactly 21 days behind. Very weird! Anyway here is the code I have now
//RTC.SetTime(new DateTime(2012, 10, 25, 15, 24, 0)); // Set once to set the RTC.
Utility.SetLocalTime(RTC.GetTime().AddDays(21)); // Set system clock.
Does anyone have an idea why the AddDays(21) is needed? and if the RTC.Initialize is needed?