There are two Syaoran and two Sakuras.
CCS Sakura and Syaoran:
They are from Japan. Sakura from this pair is the one Yuuko is talking about in the scans KatanaJon posted. (the owner of the staff) Sakura from this story is not directly related to Clow Reed. Syaoran is related in distance, however.
TRS Sakura and Syaoran, are, however, from different dimention. They look like older version of Sakura and Syaoran from CCS but they are completely different people. (except for their souls...) They are from Clow Country, not from Japan. This Sakura doesn't own the staff Yuuko is holding, and she certainly doesn't have Clow cards. This Sakura's father is Clow Reed. Syaoran has no direct relation with Clow Reed in this story.
hope you can see the difference? It does get confusing.... I suggest you to read the 2nd volume of xxxHolic to understand it better...