What you may be encountering is just that the two windows are the same size (or Form 2 is larger) and just physically overlapping form 1... unless both forms are set to maximize mode which takes the full screen viewing area.
That said, by default, when VFP runs a form, it basically has a variable name correlating to your form name... ie: "Form1" and "Form2" if those are the names of your actual forms (which I doubt, but may be for testing purposes).
So, now you are running your sample, form 1 is shown, click button, form 2 is shown. You can have a button on form 2, such as "go back to form 1" (as opposed to re-run another instance of form 1). In the click event of that, you can do the following
if wexist( "form1" )
activate window form1
endif
Similarly, in your main form, if you want to go back to form 2 again, but DO NOT want to recreate a second instance of the already open form, you could have that code something like
if wexist( "form2" )
*/ Show the already loaded form
activate window form2
else
*/ Not loaded yet, do so now
do form form2
endif
As for showing one form inside another form, you can, but they can sometimes be a bit of a pain and just some getting used to... They are called "Formsets". To do so, you are basically pre-building all the forms into one overall "formset". Start by creating a single form. Then, from the "FORM" menu item, click the menu option to "Create Form Set". It will create a parent "formset" level for you and move the form itself into the child position. Then, from the "FORM" menu, you can choose "Add New Form" again, and add as many as you need. Note, when doing this, it builds all the forms, not just based on you explicitly doing a "do form" call to launch the next form. You can set titles per window, move the physical positions of them, etc... save and run the form... Then you can show/hide as you need to... but again, can be tricky.
ANOTHER ALTERNATIVE you may try is to work with "containers", and build yourself a class library. A container is nothing but a control that can have other controls. The benefit is that you can build it once and use it as a part of a form, or on multiple forms as needed without having to keep calling the same first form. For example, a container for address information. You may have a label/textbox for Company, Address1, Address2, City, etc and save it. Now, you want to have an invoice that has a ship-to and bill-to on it. You can use two instances of the same "layout" container class on the same form. They look and operate the same, you would just bind "control source" them to respective fields.
By doing this, you can also get into using "tabbed pages" and build a container of all things associated with one "page". Then put that container on the page instead of all controls individually all in one form... Takes more time up-front, but down-stream management can be a benefit too.
