Yes, you can use NOW(), CURRENT_TIMESTAMP(), or LOCALTIMESTAMP() (if you have MySQL version 4.0.6+). When you update your row, use it too. Don't rely on MySQL doing it for you.
You can find out what version of MySQL you're using by doing:
SELECT VERSION()
You should not use "date" as a column name since that's a reserved MySQL keyword. I recommend that you change the name of that column to something else to avoid confusion, or you must surround/enclose it in backtick marks. So, to select the date in the format you want, use:
SELECT DATE_FORMAT(date, '%M, %e, %Y. %h.%i%p') AS formatted_date FROM guestbook
It's all in the manual:
http://dev.mysql.com/doc/mysql/en/date-and-time-functions.html
http://dev.mysql.com/doc/mysql/en/timestamp-pre-4-1.html
http://dev.mysql.com/doc/mysql/en/timestamp-4-1.html
🙂