Interesting logs - BitcoinMiner usng Bitcoind on CentOS

[vkgandhi84]

Hi,
I am a beginner to use bitcoind .
I installed it on CentOS and started the it with flags -server -gen -daemon -conf .
With -gen flag, I believe it would try to mine coins.
I see following logs in debug.log.

2014-03-15 16:30:25 Running BitcoinMiner with 118 transactions in block (73416 bytes)
2014-03-15 16:30:25 Running BitcoinMiner with 118 transactions in block (73416 bytes)
2014-03-15 16:30:27 Running BitcoinMiner with 118 transactions in block (73416 bytes)
2014-03-15 16:30:28 Running BitcoinMiner with 118 transactions in block (73416 bytes)
2014-03-15 16:30:29 Running BitcoinMiner with 118 transactions in block (73416 bytes)
2014-03-15 16:30:39 Running BitcoinMiner with 118 transactions in block (73416 bytes)
2014-03-15 16:30:40 Running BitcoinMiner with 118 transactions in block (73416 bytes)
2014-03-15 16:30:41 Running BitcoinMiner with 118 transactions in block (73416 bytes)

I am curious about two facts I see in the logs.
1. I am in EST and actual time of the logs is 12:30 pm, but logs show 16:30 .  I believe that's the bitcoin network time and based on the peers I am connected to by default.  But, why that big difference?
2. I see that BitcoinMiner is running with 118 transactions in block!  Why?  I thought that a block is solved roughly about 10 minutes.
    If that's true, then why my bitcoind is trying to use older transactions that might already been packed in a solved by somebody else?

Can someone explain me this or throw some light on misunderstandings if I have any about the way this work?

Thanks a lot.

[1715603548]

1715603548

[vkgandhi84]

Now I see following.

2014-03-17 00:53:05 Running BitcoinMiner with 194 transactions in block (115430 bytes)

How could that be?
I don't mind reading code to find this.  Can someone please direct me to location where I can download the code from.
I'll really appreciate if some one can point out which part of the code relates to this behaviour.

Thanks a ton.