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The video tutorial explains how to customize a default form created automatically. It begins by noting that standard fields are already present. To rearrange fields, simply click and drag them to the desired location. To delete unnecessary fields, like attachments, click the X to remove them. Additionally, some fields from the list may not appear by default in the form. Users can easily add these by dragging them from the list column and dropping them onto the form. The tutorial also highlights that some fields are not active, as they contain information supplied by SharePoint, but can still be included if desired.