Timestamp without Timezone and differing client / server tzs

Hi all ,first let me describe the set up:

Server: Postgresql 8.3.x
Server's postgresql.conf:timezone = UTC
Server's OS (Linux tz): /etc/localtime -> /usr/share/zoneinfo/UTC

Client JDBC driver: PostgreSQL 8.3devel JDBC3g with SSL (build 602)
Client/JVM TZ : America/Denver

Now, execute query:

rs = st.exceuteQuery("SELECT NOW()");//understood to be a with-tz type
rs.next();
out.println(rs.getString(1)); --> 2008-07-08 07:09:59.284012+00
(expected, denver +0700)
out.println(rs.getTimestamp(1)); --> 2008-07-08 01:09:59.284012
(expected, implicit Denver time)

Now do a DML via prepared statement into a Timestamp without Timezone.

ps.setTimestamp(new Timestamp(System.currentTimeMillis()));

and select it:

out.println(rs.getString(1)); --> 2008-07-08 14:09:59.284012+00
(un-expected??)
out.println(rs.getTimestamp(1)); --> 2008-07-08 07:09:59.284012
(un-expected??)

Question: with ts without tz storage, should not a timestamp be
normalized to the  servers implicit TZ (UTC in this case), since that is
set in the config's client-tz?

Also, is it possible/not to set the preferred TZ as a URL param to the
driver? This would be a safe option (not break apps), I believe. It
allows the string translation without tz to match the server's implicit
(zone-less string) tz.

Thanks,
Ken