Your code makes me want to cry. PHP is a HTML embedded scripting language, meaning that you need not and should not use echo to output huge chunks of HMTL. Secondly, your submit data function is never caleld, therefore the data will never be submitted.

I have corrected your code and showed how you may want to call the function:
PHP Code:
<?php include("config.php");

if (isset($_POST['create_form'])) { // this means the form was submitted
    submitData(); // niow Call the function
}

function submitData() {
    /* the form variables come from  the $_POST array, they must be sanitized
       before use in an SQL string */
    $OWNER = addslashes($_POST['OWNER']);
    $STATUS = addslashes($_POST['STATUS']);
    $PROBLEM = addslashes($_POST['problem']);

    /* don't forget to indent code */
    mysql_select_db($dbnameDaily) or die($errCon . mysql_error());

    $DATECREATE=$DATEMODIFY=date("Y-m-d H:i:s");


    // Insert a row of information into the table

    mysql_query("INSERT INTO $tableDaily
    (owner, problem, status, dateCreate, dateModidy)

    VALUES('$OWNER', '$PROBLEM','$STATUS', '$DATECREATE', '$DATEMODIFY' ) ")

    or die($errCon . mysql_error());

    //owner VARCHAR(30),
    //problem VARCHAR(999),
    //status VARCHAR(1),
    //dateCreate DATETIME,   //YYYY-MM-DD HH:MM:SS
    //dateModify TIMESTAMP)")  //YYYY-MM-DD HH:MM:SS

    echo "Data Inserted!";

}

/ * close the PHP tags and you can dump as much HTML as you like - make sure you 
    always include opening and closign HTML and BODY tags too
     */
?>
<html>
  <body>
<form name="create_form" method="post">
<input type="hidden" name="require" value="OWNER,PROBLEM">
<table>
<tr>
    <td align="right">Name:</td>
    <td><input name="OWNER" size="25"></td>
</tr>

<tr>
    <td align="right">Status:</td>
    <td><select name="STATUS">
    <option value="W">Work
    <option value="I">Idle
    </select>
    </td>
</tr>

<tr>
    <td align="right">Problem:</td>
    <td><textarea name="PROBLEM" rows="10" cols="40"></textarea>
    </td>
</tr>

<tr>
    <td colspan="2" align="center"><input type="submit" value="Submit" name="create_form">
    <input type="reset" value="Reset" name="reset"></td>
</tr>
</table>
</form>

</body>
</html>