I would like to add a date/time that the KML file was last updated to be displayed as an overaly in Google Earth, is there anyway this could be done?
I would be look
One trick is using the Google Chart API to dynamically create images from text and using that as a screen overlay image in Google Earth.
Example:
A screen overlay with embedded images is used in the Paleoglobe KML: http://www.geology.sdsu.edu/kmlgeology/kmz/paleoglobe/paleogeography.kmz
There are many websites that create images out of text for labels which you embed in a KMZ file and refer to from you KML.
Also, if you want text to appear as a label on the ground at a fixed location then you can use same trick with a GroundOverlay or simply create a Placemark with a name (which is shown on map at that location) and a Style suppressing the icon.