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When you execute commands through the message box, they're executed one at a time, atomically. Which means that setting a 'local' property such as the 'useSystemDate' has no influence on the next line of code that you execute.
So, there are two solutions: either use the multi-line message box ; or put everything on a single line, separated by a semicolon:
I am beginning to wonder if it might be related to my turning on a locale feature (its name has escaped me) that results in a country flag being displayed in the system menu bar?
The country flag in the menu-bar is just the keyboard layout settings, it shouldn't affect anything else. All the international settings are made in the system preference pane of the same name.
on the "Date & Time" tab (the one showing a calendar and an analog clock) in the window labeled "Date & Time" the date format displayed is in ISO format
yet
"set the useSystemDate to true; put the date" displays "7/12/07"
function convertDateTimeToISO pDateTime
local tTimeZone
convert pDateTime to internet date
put the last word of pDateTime into tTimeZOne
convert pDateTime to dateitems
return format("%04d-%02d-%02d %02d:%02d:%02d%s", \
item 1 of pDateTime, item 2 of pDateTime, item 3 of pDateTime, \
item 4 of pDateTime, item 5 of pDateTime, item 6 of pDateTime, tTimeZone)
end convertDateTimeToISO