At first I thought the customer was mad, but on closed tinkering I found a problem with Notes 7.03 and 6.5
A form with an embedded view is fine, but if a sub document i(which will display in the embedded view) is composed then saved and the embedded view is refreshed with a "@postedcommand([ViewRefreshViews])" the main form action button which updates status will not work.
I had a button that just set a field's value and it would not do it.
How I resolved this after consorting with colleagues was to write it all in lotusscript.
Very annoying though.
If you get this sort of problem, I suggest using lotusscript with embedded views.