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The video tutorial explains how to customize a default form that has been automatically generated, which includes standard fields. To rearrange fields, users can click and drag them to their desired position easily. To remove a field, such as attachments, users can click the X to delete it. Some fields in the list may not appear by default on the form. To add these fields, users can drag them from the list column area and drop them onto the form. Additionally, fields that display information supplied by SharePoint can be included, although they are not active fields. This customization process is straightforward and user-friendly.