Ugh I know my friend hates this, but I solved my own problem before someone could help or come up with their own solution..

So the solution? Well I always say "When all else fails, API it!" This is another case I had to resort to that.. I found when setting the forms TopLevel = False was there when the bug arose. So I had to avoid having to change that value while still being able to add the form to a parenting form. The answer: SetParent api.

Here's a quick snippit code that demonstrates:
vbnet Code:
  1. Public Class Form1
  2.  
  3.     Friend Declare Function SetParent Lib "user32" (ByVal hWndChild As IntPtr, ByVal hWndNewParent As IntPtr) As Integer
  4.  
  5.     Private Sub Form1_Load( ByVal sender As System.Object,  ByVal e As System.EventArgs) Handles MyBase.Load
  6.         Dim nForm As New Windows.Forms.Form()
  7.         Dim nTextBox As New Windows.Forms.TextBox()
  8.  
  9.         nTextBox.Location = New Point(0, 0)
  10.         nTextBox.Size = New Size(158, 20)
  11.         nTextBox.Text = "Sample text"
  12.  
  13.         SetParent(nForm.Handle, Me.Handle)
  14.         nForm.Show()
  15.     End Sub
  16.  
  17. End Class

The result is a form within the parent from, whom contains normal funtioning textbox controls