The field name "time" might be messing you up. I think there are certain words you're not supposed to use for field names. Change it to "timeupdated" or something like that. See if it works after you do that. I just tried it myself on a dummy table and form, and that seemed to do the trick.
Thanks that seemed to work. I did however find that the person who originally made the database had =now() beside time in the query field, that was probally screwing it up too. Thanks for all your help!