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The video tutorial explains how to customize a default form that is automatically generated. It highlights that the form includes standard fields, which can be easily moved by clicking and dragging them to the desired location. To delete unnecessary fields, such as attachments, users can simply click the 'X' to remove them. Some fields in the list may not appear in the default form, but users can drag and drop these fields from the list column area into the form. The tutorial also notes that certain fields, like information supplied by SharePoint, are not active but can be included if desired.