This question keeps coming up on CompuServe and on various sites on the Internet. The answer is 'yes': the HP Palmtop's version of Lotus 1-2-3 can handle this problem.
The functions in 1-2-3 that deal with dates are @DATE(year,month,day) and @DATEVALUE(date-string).
If for example you enter @DATEVALUE("14-OCT-2002") in cell A1 of a spreadsheet and use the [MENU] Range Format Date 1 command to set the date format and then use the command [MENU] Worksheet Column Set Width 12 and Enter to eliminate the overflow indicators (*********) you'll see 14-OCT-2002.
To use the @DATE() function, remember that Lotus 1-2-3 counts dates starting with the year 1900 and goes up to 2099. Thus to enter my birthday I'd use @date(38,8,25) which would show up as "25-Aug-38". To show the date of my 100th birthday I'd use @date(138,8,25) which would display as 25-Aug-2038.