...
Okay after someone pointed out my algebra mistakes....the Pools are reading the correct hash as I forgot about a missing miner I have.

So perhaps the API is not reporting correctly.....my understanding is the only thing that matters is hashing as seen by the pool and if you have it there you have all you need regardless of other stats.

So on this one I can officially call this one a PEBKAC and its me  =)

Edit: though doing the actual accepted hash rate calculation:

35m 51s = 2151s
524000 * 2^32 / 2151 = 1.046TH/s - which is of course OK

So yeah it's most likely the driver doing something wrong with it's work difficulty calculation.