Index: date_api_elements.inc
===================================================================
--- date_api_elements.inc	(revision 40)
+++ date_api_elements.inc	(working copy)
@@ -145,9 +145,9 @@
 
   $element['date']['#type'] = 'textfield';
   $element['date']['#weight'] = !empty($element['date']['#weight']) ? $element['date']['#weight'] : $element['#weight'];
-  $element['date']['#default_value'] = is_object($date) ? date_format($date , $element['#date_format']) : '';
+  $element['date']['#default_value'] = is_object($date) ? date_format_date($date, "custom", $element['#date_format'])  : '';
   $element['date']['#attributes'] = array('class' => (isset($element['#attributes']['class']) ? $element['#attributes']['class'] : '') .' date-date');
-  $element['date']['#description'] = ' '. t('Format: @date', array('@date' => date($element['#date_format'], time())));
+  $element['date']['#description'] = ' '. t('Format: @date', array('@date' => date_format_date( date_make_date(date($element['#date_format'], time())), "custom", $element['#date_format'])));
   
   // Keep the system from creating an error message for the sub-element.
   // We'll set our own message on the parent element.
Index: date_popup/date_popup.module
===================================================================
--- date_popup/date_popup.module	(revision 40)
+++ date_popup/date_popup.module	(working copy)
@@ -244,8 +244,7 @@
   $id = date_popup_js_settings_id($element['#id'], 'datepicker', $settings);
   $sub_element = array(
     '#type' => 'textfield',
-    '#default_value' => (!empty($element['#value']['date']) || !empty($edit['date'])) && is_object($date) ? date_format($date, $date_format) : '',
-    '#id' => $id,    
+    '#default_value' => (!empty($element['#value']['date']) || !empty($edit['date'])) && is_object($date) ? date_format_date($date, 'custom', $date_format)  : '',    '#id' => $id,    
     '#size' => !empty($element['#size']) ? $element['#size'] : 20,
     '#maxlength' => !empty($element['#maxlength']) ? $element['#maxlength'] : 30,
     '#attributes' => $element['#attributes'],
@@ -256,7 +255,7 @@
     $sub_element['#value'] = $sub_element['#default_value'];
   }
   // TODO, figure out exactly when we want this description. In many places it is not desired.
-  $sub_element['#description'] = ' '. t('Format: @date', array('@date' => date($date_format, time())));
+  $sub_element['#description'] = ' '. t('Format: @date', array('@date' => date_format_date( date_make_date( date($date_format, time())), 'custom', $date_format)) );
   return $sub_element;
 }