Followed your tutorial closely and my modal form launches, populates dynamic content but goes away on Submit without sending data or validating (displaying errors). When the same form is launched in a new window (sans fancy) it works fine.
My understanding of this issue suggests that something in the iframe support might be preventing the modal form from functioning properly. Could it be the new version of Fancybox since your tutorial?
Anyone successfully implement this with Fancby box 1.3?
Thanks for a rockin plugin!