“It is now showing 3:00am … the clock stopped 1 hour ago, what is the correct time now?”

Either you phrased the question wrong, or the answer is 4:00 AM.

And no, I did not cheat. I’ve heard a very similar variant on it in the past.

It’s right up there with the riddle of the sphinx, and the “96% of Harvard’s Students got it wrong” riddle.

EDIT: Though, I have to admit, http://www.riddles.com does have some interesting riddles to speak of. I’m going to check it out some more later.