Hello,
Thanks for replying. Yes, the form works fine in Forms Services in a Form Library at Site Collection level. I can open it in Forms Services and save it as a .xml file.
I then use that .xml file to create a content type. I attach the content type to a Form Library in a Site at a lower level than Site Collection (a Team site). Then when I go to New -> My Form on that form library it always tries to launch InfoPath client.
"Display as a Web Page" does not work reliably.