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The video tutorial explains how to customize a default form that has been created automatically. It begins by displaying the standard fields in the form. To reposition any field, simply click and drag it to the desired location. To remove a field, click the 'X' beside it, which will delete it from the form. Some fields may not appear by default but can be added by dragging them from the list column area to the form. It is noted that certain fields are not active because they contain information supplied by SharePoint; however, users have the option to include them if desired.