Hi Matt,
Yes, the date/time is computer-side. When the packet comes in from the XBee, the PHP script just takes the current time and sticks it in the database along with the data.
XBees plug into your PC via a USB cable (FTDI cable), and appear to your OS as a serial port. So, think more like a modem.
I'd highly recommend "Wireless Sensor Networks" by O'Reilly/Robert Faludi. He really takes you by the hand and guides you through the nitty gritty of XBees.