So I poked around and figured out how to get the Google Form's description to automatically update when a new high bid is submitted. Steps:

1. Go to the Responses spreadsheet. Under Tools (seventh tab), select Script Editor. Then select "spreadsheet" (the fourth option on the left). It should open up a new window with Code.gs and some things in it.
2. Paste in the following function at the end of the file:

function updateForm() {
var existingForm = FormApp.openById('1lE7uZ6jev_ytseqyS0mDCQAon-e5QO9WZCsHqDUlgpM');

var sheet = SpreadsheetApp.getActiveSheet();
var rows = sheet.getDataRange();
var numRows = rows.getNumRows();
var values = rows.getValues();

var maxbid=170;
var maxbidname="Starting Bid";
var maxbidtime=0;
for (var i = 1; i <= numRows - 1; i++) {
var bid = String(values[i][1]);
bid=parseInt(bid.replace(/[^0-9\.]/gim,""));
if (bid>=maxbid+5) {
maxbid=bid;
maxbidname=values[i][3];
maxbidtime=values[i][0];
}
}

existingForm.setDescription('Auction/bidding form for a collaborative art piece done between Braeburned (sketch/lines) and Kenket (painter).\n\nProduct Images!\n\nScan: http://i.imgur.com/Wk6a7B8.jpg\nIRL Shot #1: http://i.imgur.com/iRtVv0X.jpg\nIRL Shot #2: http://i.imgur.com/Tu0tIro.jpg\nIRL Shot #3: http://i.imgur.com/pOChypL.jpg\nIRL Shot #4: http://i.imgur.com/rcVXfof.jpg\nSignatures on the back!: http://i.imgur.com/8bXsPfm.jpg\n\nAcrylic on MDF board (wood).\nBid includes shipping prices.\nBidding will end on Wednesday, February 18th, at 7 P.M (CST). The auction will close 5 minutes after the last bid.\n\n- -\nThe current max bid is $'+maxbid.toString()+' by '+maxbidname+', placed at '+maxbidtime+'.\n- -\n\nView bid history here:\nhttps://docs.google.com/spreadsheets/d/1h-CJfBs4sa4mQeoOJ8EVc3YN53Bm0eFiz0aXCGOjc_k/edit?usp=sharing');
}

3. Save the script. Give it the authentication it needs to run (so it can change your form's description).

4. At the top of the page, select Resources (the sixth column), then Current Project's Triggers. You'll probably need to give this project a name (just call it Auction Script or something), and then you may have to open Current Project's Triggers again. Under Run, select updateForm (the function we want to run), and under Events select "From Spreadsheet" then "On form submit".

5. If it didn't autosave, save it again.

6. Run (fourth column) updateForm. Alternatively, you can submit a lowball bid (say, $0).

I've tested it with a copy of the bid order spreadsheet, and so expect it to work without trouble. (Email me at mugamma[at]gmail.com if you need help with something.)

Whoa, sweet! I think I've got it all set-up. That's fantastic! Thanks so much dude!

Question though; If someone happens to not refresh the page in time, and submits a bid that's lower than the maximum, will that lower bid be displayed, or will it always display the highest one placed?

You're welcome! :D

It'll display the "highest" bid, where "highest" means at least $5 more than any previous highest bid. You can see that Sunoth bid 185 after I bid 200, but it thinks my 200 bid is the top bid. If Sunoth bid 202 instead, it would still think that my bid was the highest bid, and someone who bid 205 would become the new high bidder (even though they only bid $3 more than the invalid 202 bid). If two people submit the same bid (say Sunoth had also bid 200), it'll call the high bidder whoever submitted the bid first (since the sheet is sorted by the timestamp). I don't recall if you have your form setup to suggest that they submit another response or not; if you do, that should refresh the form description which will let them see if they're the new high bidder or not.

Also, the bid history link doesn't work because it got shortened: you'll need to change the last link with the elipsis in it to the full link. (I would paste it here but I think FA might shorten it, which wouldn't be helpful.)

Er, any->the last (or, equivalently, every).

Gotcha! And I just realized that I had left the minimum increment at $5. Whoops! I think $2 is a more reasonable increment. I changed
"if (bid>=maxbid+5)"
to
"if (bid>=maxbid+2)"
Because I assumed that was the bit of code responsible. Then, saved and re-ran it. Lemme know if there's anything more I need to do, and thanks so much again!

Yep, that'll change the minimum bid increment!

Clearly I should have just emailed you the code snippet, because somehow the Javascript endline character "\n" (or backslash n if it doesn't display correctly) got turned into just "n", which broke all of the product image links (.jpgnIRL doesn't work). You should be able to fix it with by inserting a backslash before the n in every "jpgn".

I don't know if it's intentional or not, but the bid history is "404"

Oop, sorry about that! Should be fixed now!

While this is a very awesome piece why wouldn't it happen again? You two can team up any time your schedules link up. I doubt it would be that rare an opportunity.