The palette window contains three different palettes from which you can choose ready-built elements. The first contains static HTML elements, the second contains form-based dynamic HTML elements, and the third contains abstract dynamic elements (objects that have no true HTML equivalent).
A pre-defined form with two text fields and Submit and Reset buttons appears. This form is just a template that you can modify.
Notice that before you dragged the form or the multi-line text element from the palette, you had to set the cursor position. Because an HTML file is a text flow, you can't just drag an element to any point on the window. You must place the cursor where you want the element, using hard returns if necessary, and then add the element. If you have text selected when you drag, the element will replace the selection.
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