I actually figured it out late last night. According to the man page it doesn’t really make sense the -s is supposed to sync the system clock form the hwclock but the following is form my terminal session and it solved the invalid argument. I really just ran these out of desperation as I had already been poking around reading the NVRAM on the ds1307 and knew it was at least communicating with the device.
hwclock: ioctl(RTC_RD_TIME) to /dev/rtc0 to read the time failed: Invalid argument
#hwclock -w
hwclock: ioctl(RTC_RD_TIME) to /dev/rtc0 to read the time failed: Invalid argument
#hwclock -s
#hwclock -r
Sat 22 Mar 2013 11:34:45 PM CDT -0.925138 seconds
#cat /sys/class/rtc/rtc0/time
4:34:49