The NSTimer documentation states:
Because of the various input sources a
typical run loop manages, the
effective resolution of the time
interval for a timer is limited to on
the order of 50-100 milliseconds. If a
timer’s firing time occurs while the
run loop is in a mode that is not
monitoring the timer or during a long
callout, the timer does not fire until
the next time the run loop checks the
timer. Therefore, the actual time at
which the timer fires potentially can
be a significant period of time after
the scheduled firing time.
So accuracy can be as bad as 0.1, not 0.01 seconds. Not to mention if your thread is blocked for some reason. So if your firing time is crucial you should be looking at other things. Read this SO post for kick-off. Apple had a metronome sample code (in which, obviously, timing is crucial) but I can't find it just now.
In any case, if you are implementing a timer with NSTimer, you should record your start time. Then, whenever you update your interface, simply take the difference of the current time and your start time (with NSDates).