I've reproduced quite easily this end. I found using DATEADD resolved it
DATEADD(MINUTE, 23*60 + 30, CONVERT(DATETIME,CONVERT(DATE, VRSAS.EventOn)))
But I'm not actually sure why yet. Steps to reproduce below.
CREATE TABLE ViewRangeSheetActualStatus
(EventOn DATETIME,
[Status] BIT,
RangeSheet INT
)
INSERT INTO [dbo].[ViewRangeSheetActualStatus]([EventOn], [Status], [RangeSheet])
SELECT '20100903 11:02:39.517', 1, 1 UNION ALL
SELECT '20100731 11:03:23.577', 1, 1 UNION ALL
SELECT '20100731 00:00:00.000', 1, 1
/*Selects ALL records - No error*/
SELECT 
CONVERT(DateTime, (CONVERT(varchar(50),CONVERT(Date, VRSAS.EventOn)) 
+ ' ' + 
CONVERT(varchar(50), CONVERT(Time, '23:30')))) E 
FROM ViewRangeSheetActualStatus VRSAS 
/*Selects top (1) record - Error!*/   
SELECT top (1)
CONVERT(DateTime, (CONVERT(varchar(50),CONVERT(Date, VRSAS.EventOn)) 
+ ' ' + 
CONVERT(varchar(50), CONVERT(Time, '23:30')))) E 
FROM ViewRangeSheetActualStatus VRSAS 
Looking at the ComputeScalar properties in the execution plan the two are different.
All
(CONVERT(datetime,(CONVERT(varchar(50),CONVERT(date,[ViewRangeSheetActualStatus].
 [EventOn] as [VRSAS].[EventOn],0),0)+[@1])+CONVERT(varchar(50),CONVERT(time(7), 
 [@2],0),0),0))
Top 1
(CONVERT(datetime,(CONVERT(varchar(50),CONVERT(date,[ViewRangeSheetActualStatus].
 [EventOn] as [VRSAS].[EventOn],0),121)+' ')+'23:30:00.0000000',0))
Before the final conversion to datetime the first one produces a varchar containing the following
------------------------------
Sep  3 2010 11:30PM
Jul 31 2010 11:30PM
Jul 31 2010 11:30PM
The second version produces a varchar containing
------------------------------
2010-09-03 23:30:00.0000000
It is the .0000000 that causes the problem casting back to datetime. I have no idea why the addition of TOP to the query would cause this completely unrelated change in behaviour.