not sure about the .001 being a reason to doubt a time in sport, F1 lap times quite often come down to thousandths of a second, and the difference between 1st and 2nd in qualifying can usually only be measured in 100ths.

Having said that the photo's do look like phelps came second, although looking more closely it looks like the other guy's hands are above the plate you have to touch to register your finish time, while phelps is hitting it straight on.