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During the initial phase of the sync (when the necessary changes are being determined), FotoAlbum will verify that your date/time of your PC is set correctly (within 15 minutes). The check is made taking into consideration the time zone you have set on your PC (as well as whether Daylight savings is in effect).
The accuracy of your PC's clock is only critical if you make updates using both the Web and FotoAlbum and they are made relatively close in time. FotoAlbum does compute the offset of your PC's clock from the FotoTime website and for the most part your clock can be incorrect without affecting sync operations. However, it is a good idea to have your clock set correctly.
If for some reason, your time is set correctly and FotoAlbum is stating that your time is incorrect, you can turn off the time check and you will not be warned about this again. Refer to: Sync Preferences to change this.