Hello
I've checked Your code. It works...but I don't know what is a reason of creating 2 Date's objects... Perhaps I don't understand the problem.

I've tried also this:

function timer() {
var dtate = new Date();
ch = dt.getHours();
cm = dt.getMinutes();
cs = dt.getSeconds();
trace(ch + ":" + cm + ":" + cs + " it works!");
}
timeint = setInterval(timer, 1000);