>I want to create a form based on a class of a form in a .VCX. Is there a quick way to do this instead of having my class setup as a Form template in the Options dialog? I've tried dragging the class icon from the Class Browser onto a form set, but to no avail.

Dragging the class icon into a form set won't change the existing forms parent class. It will just add a new form to the form set with the new class.

You have to:
1) Open a new form
2) Drag the class icon from the class browser onto the form
3) Remove the other form
4) (Optional) Remove the form set

HTH