PS1 Fun

.bashrc

# fancy colored prompt
export COLOR_LIGHT_GREEN='\e[1;32m'
export COLOR_LIGHT_PURPLE='\e[1;35m'
export COLOR_GRAY='\e[1;30m'
export COLOR_NC='\e[0m'
export COLOR_TEAL='\e[36m'

path () {
    if [ $(pwd) == "/" ]; then
        :
    elif [ $(pwd) == ${HOME} ]; then
        :
    elif [ $(dirname $(pwd)) == "/" ]; then
        echo -n "/"
    else
        VAR=`dirname $(pwd) && echo "/"`
        echo -n "${VAR//[[:space:]]/}"
    fi
}

PS1="\[${COLOR_LIGHT_PURPLE}\]\u\[${COLOR_GRAY}\]@\[${COLOR_LIGHT_GREEN}\]\h: \[${COLOR_GRAY}\]\$(path)\[${COLOR_TEAL}\]\W \[${COLOR_GRAY}\]\$\[${COLOR_NC}\] "

The time prompt is created by adding \t to the beginning of the line inside square bracket characters:
PS1="\[${COLOR_GRAY}\][\t] \[${COLOR_LIGHT_PURPLE}\]\u ... etc