splink_led enables interrupt from the gpio line where the reset button attached (if you do cat /proc/interrupts you will see RTD on the irq2 - this one is created by splink_led). Also it has interface - /dev/led4 which is in fact not a led driver but a way for registering user space process (watchdog) to which splink_led should send the signal once the button is pressed. But this wierd functionality can be easily be done without any interrupts handlers - there is a posibility to read the gpio line states from within user space using /dev/gpio/gpioin (if I recall the things correctly). Also there is no need to use kernel module for driving leds also, everything already provided by broadcom in the kernel.
As for ntp - I've just noticed that actually there is ntpclient which do all the things - watchdog just drives the firewall, and this also can be done using ipt_time. As for local/utc time - you should set TZ variable for this to work. See my /etc/profile for details.