Here's how I think it should work:
User completes and submits a form
The user receives a message or e-mail or is redirected to another page or some combination of all of these
An e-mail is sent to whoever I setup under Administrator notifications that a form has been submitted
The part I don't get is just exactly what is contained in the notification? Do they get an attachment containing the form data? Or is that what insert form field does?
The notification content is whatever you set it to be. When you setup Notifications there is the Message Body field for the Notification. This is where you configure what content will be in the notification email. There is a drop down with form field value variables that you can use in the Notification email. These variables are replaced with the form field value when the form is submitted.
One of the options is an {all_fields} token. Inserting this into your Notification body via the Insert Form Fields drop down will output a nicely formatted table that contains all of the form field data submitted by the form.
There are no file attachments with notification, only content within the email itself.
Here is a hook for adding the attachment to the e-mail:
http://www.gravityhelp.com/documentation/page/Gform_admin_notification_attachments
