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Date: Thu, 18 Sep 2008 06:09:38 -0700 (PDT)
From: Nash Nipples <trashy_bumper@yahoo.com>
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Subject: Re: NTP on 7.1 BETA amd64 odd behaviour
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> -----------------------------------------------------
> 
> If I comment out the
> 
> ntpd_flags="-c /etc/ntp.conf -p
> /var/run/ntpd.pid"
> 
> line.
> 
> ntp starts without any error.
> 
> Should I accept this or is something wrong?
> 
> Thanks
> /Leslie

Looks like it wants only one parameter as a flag in rc.conf.local
You can try to change it to just ntpd_flags="-p /var/run/ntpd.pid"
If you look through the code in /etc/rc.d/ntpd file it might become more clear to you.