Found the issue. It was also causing the customer created_at date to be way off in the customer_entity table, which is why in admin > customers > manage customers the "Customer Since" column on the grid was way off.
app/code/core/Mage/Eav/Model/Entity/Attribute/Backend/Time/Created.php
Compared the files from 1.8.0 and 1.8.1 and there were some changes in 1.8.1. I commented out a few lines that were causing the problem. Not sure if it's the best solution as I have basically converted it to the same as 1.8.0
<?php
/**
* Magento
*
* NOTICE OF LICENSE
*
* This source file is subject to the Open Software License (OSL 3.0)
* that is bundled with this package in the file LICENSE.txt.
* It is also available through the world-wide-web at this URL:
* http://opensource.org/licenses/osl-3.0.php
* If you did not receive a copy of the license and are unable to
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* to [email protected] so we can send you a copy immediately.
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* DISCLAIMER
*
* Do not edit or add to this file if you wish to upgrade Magento to newer
* versions in the future. If you wish to customize Magento for your
* needs please refer to http://www.magentocommerce.com for more information.
*
* @category Mage
* @package Mage_Eav
* @copyright Copyright (c) 2013 Magento Inc. (http://www.magentocommerce.com)
* @license http://opensource.org/licenses/osl-3.0.php Open Software License (OSL 3.0)
*/
/**
* Entity/Attribute/Model - attribute backend default
*
* @category Mage
* @package Mage_Eav
* @author Magento Core Team <[email protected]>
*/
class Mage_Eav_Model_Entity_Attribute_Backend_Time_Created extends Mage_Eav_Model_Entity_Attribute_Backend_Abstract
{
/**
* Set created date
* Set created date in UTC time zone
*
* @param Mage_Core_Model_Object $object
* @return Mage_Eav_Model_Entity_Attribute_Backend_Time_Created
*/
public function beforeSave($object)
{
$attributeCode = $this->getAttribute()->getAttributeCode();
$date = $object->getData($attributeCode);
if (is_null($date)) {
if ($object->isObjectNew()) {
$object->setData($attributeCode, Varien_Date::now());
}
} else {
// convert to UTC
//commented out by alex lacayo
//$zendDate = Mage::app()->getLocale()->utcDate(null, $date, true);
//$object->setData($attributeCode, $zendDate->getIso());
}
return $this;
}
/**
* Convert create date from UTC to current store time zone
*
* @param Varien_Object $object
* @return Mage_Eav_Model_Entity_Attribute_Backend_Time_Created
*/
public function afterLoad($object)
{
$attributeCode = $this->getAttribute()->getAttributeCode();
$date = $object->getData($attributeCode);
$zendDate = Mage::app()->getLocale()->storeDate(null, $date, true);
$object->setData($attributeCode, $zendDate->getIso());
parent::afterLoad($object);
return $this;
}
}