Index: sites/all/modules/date/date_popup/date_popup.module
===================================================================
--- sites/all/modules/date/date_popup/date_popup.module	(revision 57)
+++ sites/all/modules/date/date_popup/date_popup.module	(working copy)
@@ -244,7 +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, $date_format) : '',
+    '#default_value' => (!empty($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,
@@ -256,7 +256,7 @@
     $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_now(), 'custom', $date_format)));
   return $sub_element;
 }
 
@@ -282,7 +282,7 @@
   $id = date_popup_js_settings_id($element['#id'], 'timeEntry', $settings);
   $sub_element = array(
     '#type' => 'textfield',
-    '#default_value' => (!empty($element['#value']['time']) || !empty($edit['time'])) && is_object($date) ? date_format($date, $time_format) : '',
+    '#default_value' => (!empty($element['#value']['time']) || !empty($edit['time'])) && is_object($date) ? date_format_date($date, 'custom', $time_format) : '',
     '#id' => $id,
     '#size' => 10,
     '#maxlength' => 10,
@@ -293,7 +293,7 @@
     $sub_element['#value'] = $sub_element['#default_value'];
   }
   // TODO, figure out exactly when we want this description. In many places it is not desired.
-  $sub_element['#description'] = t('Format: @date', array('@date' => date($time_format, time())));
+  $sub_element['#description'] = t('Format: @date', array('@date' => date_format_date(date_now(), 'custom', $time_format)));
   return ($sub_element);
 }