Easy.
Rename your form1 template as form. The template is meant to be called form.
Alternatively, you can do this:
In your form1.php, find:
PHP Code:
eval('print_output("' . fetch_template('form') . '");');
Replace with:
PHP Code:
eval('print_output("' . fetch_template('form1') . '");');
Your form1.php file is looking for the form template, which you are calling form1.