I tried this and it didn't work. No, I am not using Exchange server.
If you want the other person to see your custom form, they must have access to the form definition. In your scenario that means you need to embed it in each item. I had expected that to happen automatically, based on your description, but lets add one more setting -- on the Properties page of the form in design mode, check the box for "Send form definition with item." Then go through the same process of sending a rich-text message to a rich-text recipient with the attached item.
What version and build number of Outlook is the recipient using? If it's Outlook 2003 SP2, you may need to save the contact as an .oft file, then send that .oft with instructions for the user to save it as a file, then open it with Tools | Forms | Choose Form.
As you might have guessed, custom forms were never intended to be used in the way you're trying to use yours.

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Sue Mosher, Outlook MVP
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>I tried this and it didn't work. No, I am not using Exchange server.
>
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>>
>> Do you use Exchange as your mail server?
>>
>> >I created the form in Outlook by opening a regular contact form and choosing
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>> >> > an email, all the custom portion of the form is lost. Why? Can this be
>> >> > fixed?
Kim - 27 Apr 2006 00:18 GMT
That didn't work either. I am using Outlook 2003 and sending to myself. The
Sent items shows the file intact. However, the file received in the Inbox
does not include the custom form. I have found a work around by creating a
PST and placing all the vCards I want to send into it. Then I send the PST
(different extension for emailing of course).
I'm curious, what are custom forms supposed to be used for? I discovered
this feature and taught myself with no training. I didn't know I was so far
off track.
> If you want the other person to see your custom form, they must have access to the form definition. In your scenario that means you need to embed it in each item. I had expected that to happen automatically, based on your description, but lets add one more setting -- on the Properties page of the form in design mode, check the box for "Send form definition with item." Then go through the same process of sending a rich-text message to a rich-text recipient with the attached item.
>
[quoted text clipped - 24 lines]
> >> >> > an email, all the custom portion of the form is lost. Why? Can this be
> >> >> > fixed?
Kim - 27 Apr 2006 00:21 GMT
Sending the OFT file DID work.
> That didn't work either. I am using Outlook 2003 and sending to myself. The
> Sent items shows the file intact. However, the file received in the Inbox
[quoted text clipped - 34 lines]
> > >> >> > an email, all the custom portion of the form is lost. Why? Can this be
> > >> >> > fixed?