I just grabbed the Lightweight Java Game Library (
http://java-game-lib.sourceforge.net/ ) and meassured the granularity of its HiresTimer, and it seems to have an granularity of 0.01 ms and less, whereas System.currentTimeMillies has a granularity of 50 ms on my machine (Win98, K6-2 333MHz).
Is this possible? I can't believe it!