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I've experienced the same thing (redhat)

int strtotime ( string time [, int now])

... will try to parse that format into a Unix timestamp RELATIVE TO THE TIMESTAMP GIVEN IN NOW, OR THE CURRENT TIME IF NONE IS SUPPLIED. (sorry wasn't sure how else to give emphasis)

echo date("m/d/Y h:i:s",time());
#result: 10/10/2004 10:14:31

echo date("m/d/Y h:i:s",strtotime("+ 1 hour", time()));
#result: 10/10/2004 01:00:00
#expected: 10/10/2004 11:14:31

echo date("m/d/Y h:i:s",strtotime("+ 1 hour"));
#result: 10/10/2004 01:00:00
#expected: 10/10/2004 11:14:31

it appears that strtotime always returns the date at midnight (00:00:00) and is in fact, not relative to the timestamp given in now or the current time if none is supplied.  Suggesting that the second argument seems to have no effect.

I checked at work and strtotime works properly on php 4.3.3 (also redhat).  However at home I'm using 5.0.