Andrew,
If you put multiple apps on a client machine, pulling out the common classlibs can go a long way to reducing exe size too. I'm not sure what precedence a physical form files vs the ones in the exe which one would get loaded. It sounds like in your case the physical files won out. If you switch from excluded to included you probably need to make sure you erase the old files.
>With a lot of my forms I exclude them from the Project and thus reduce the size of my .exe However I have just run across a situation where a form that was once excluded, and the old version is sitting on the client machine in the forms directory, is now Included, but the new .exe still referenced the old form rather than the Included built in one. I will post again when I resolve this.
>Keep up the good work, I admire the amount of knowledge that you contribute.