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The video tutorial explains how to customize a default form created automatically. It highlights that standard fields are preloaded, and users can easily reposition fields by clicking and dragging them to the desired location. To remove unnecessary fields, such as attachments, simply click the 'X' to delete. Additionally, some fields in the list may not be displayed in the default form. Users can add these fields by dragging them from the list area onto the form. The tutorial also notes that while some fields are not active and are supplied by SharePoint, users do have the option to include them in the form if desired.