change line 5 and 6:
<?php virtual("/WA_ValidationToolkit/WAVT_Scripts_PHP.php"); ?>
<?php virtual("/WA_ValidationToolkit/WAVT_ValidatedForm_PHP.php"); ?>
to:
<?php require_once("../WA_ValidationToolkit/WAVT_Scripts_PHP.php"); ?>
<?php require_once("../WA_ValidationToolkit/WAVT_ValidatedForm_PHP.php"); ?>
Dreamweaver will use the virtual function if the "Create Links Relative TO:" option is set to "Site" on the Local Info tab of your site definition. Change it to "Document" So that Dreamweaver will use the require_once() function instead.
In the Universal Email server behavior, you have not used any of the Dynamic data bindings to output the form in the email.
Double click the Universal Email server behavior. On the body tab, click the DW Edit icon.
Open the bindings panel, and expand the form collection. Drag the Form element bindings where the information should be displayed.
For the form builder errors, try deleting the Dreamweaver cache file from the users configuration folder, more information can be found here:
common_installation_issues.pdf