in your form before update event put
Code:
person=environ("username")
updatetime=now()
the format MM/DD/YY hh:mm AM/PM is just that, a format (which is a text datatype) - which you would use to display time in that format e.g.
format(myfield,"MM/DD/YY hh:mm AM/PM") returns now() as a text value '05/28/15 02:59 PM'
or use the control format property
datetime is actually a decimal number - the value before the decimal point is the day as a number (today is 42152) and the fractional part is the time expressed as a percentage of 24 hours - so 12 noon is 0.5, 6:30pm is 0.771