The peer's stratum is less than the host's stratum??? That's weird.  You're the peer, is the host... the way NTP is supposed to work is that there are certain "stratum-1" time servers that are directly connected to an authoritative time source like an atomic clock or a GPS; any machine that syncs to these stratum-1 servers are considered stratum-2 machines; any machine that syncs to those is a stratum-3 machine... and so on, and so forth.

If is higher stratus than your machine, something's very odd.