Hi Michael,
Frustrating, isn't it? All OpenGL and graphics programming beginners have questions similar to yours. Keeping track of the various frames of reference can be tough.
The first thing I would recommend is getting a copy of the OpenGL SuperBible from Amazon or another retailer. It starts at the absolute beginning and progressively builds from there. The earlier poster who recommended the NeHe site is giving good advice too.
As for your question itself, when you create an OpenGL program you can set the "modelview" matrix to be the identity (see the SuperBible for more info) and all coordinates you set in glPoint() calls will be defined relative to that matrix as the frame of reference. If you don't do anything besides call glPoint() from here on out all your objects will be in the same, absolute coordinate system.
It gets tricky when you start calling glTranslate and glRotate and glLoadMatrix, as those functions transform the frame of reference. When that happens all subsequent glPoint() calls are then relative to that new frame of reference.
(As mentioned by another poster, if you want to go back to the earlier frame of reference you have to save the modelview matrix on a stack before transforming it, and then you can "pop" the stack and get back to where you were before.)
It's hard to describe this on a support site, but think of it as a series of mechanical arms in a dentists chair. He can move the tray to be under your chin, then rotate it at an angle to cup your chin. Each independent motion can be thought of as a transformation, implemented in OpenGL as a matrix.
Like I said, it's hard to describe this properly online. Grab the SuperBible book and it'll make a lot more sense. Good luck!