There is a way to 'cut off' extra part of a form, very similar to cutting a rectangle from a large piece of paper with scissors.

The following Win32 (WinAPI) functions do the trick (in ABC order):
CombineRgn
CreateRectRgn
DeleteObject
GetFocus
GetWindowRect
SetWindowRgn

There is another problem, after you cut the caption bar off your form: how to move this form using a mouse. Fortunately there is a solution too.

Check the following examples:
http://www.news2news.com/vfp/function=174&example=126
How to make a transparent area in a form.

http://www.news2news.com/vfp/function=174&example=143
How to create a round dialog form.

http://www.news2news.com/vfp/function=174&example=127
How to 'cut off' a form's title bar the Close button