What's happening? There's a bug in the Alarm Clock app that has been affecting users when a change to DST occurs. Other iOS users in Queensland, Austraila also reported that their alarm clocks adjusted to the Daylight Saving Time change on the 3rd, despite the fact that they're not in a DST zone.
There are workarounds available -- users can set the alarm for one hour after the time they actually want to wake up, or they can turn off the recurring alarm and set a non-recurring alarm every day.
Apple Australia apparently told ZDNet Australian Edition that they were aware of the problem and have developed a fix that will be included as part of an upcoming software update. It's expected that the update will appear before daylight saving time changes happen in other parts of the world, including November 6th (USA) and October 30th (EU). That means that we may see another interim iOS release prior to the expected arrival of iOS 4.2 in late November.