Welcome to Date and Time fun with SQL Server!
Dates (and Times) are a controversial topic in the both the way they are stored in a database as well as how to get it to display for your given query.
Many, many posters to this and other database forums frequently ask about storing times/dates as non-date/time datatypes ... and the resulting discussions are interesting reads.
Retrieving and displaying date/time data is just as, um, enlightening in the forums.
This handy little chart from SQL Server 2005 Books Online explains the mysterious "106" format.
SQL Server 2005 Books Online (September 2007)
CAST and CONVERT (Transact-SQL)
My best advice for you is to spend some time working with the storage aspects of the datatypes and being able to manipulate the display of the dates (and times) until the "fog lifts". You will quickly be able to recall where to look up the syntax for formatting.
It looks like you are passed your first problem.
MCITP: DBA, MCSE, MCTS: SQL 2005, OCP