[Lazarus] Can't add new form to Lazarus App

[Terry A. Haimann]

On an old Lazarus app (Linux) today I tried to add a form and got the
following:

http://www.haimann.us/Images/Test.png

After selecting this option, the new form appears messed up.  At the
botton of the unit.pas file the following is displayed:

initialization
  {$I unit1.lrs} 

Even after I save the unit under another name.   After compilation when
the form is displayed via a show.modal, the form is blank.
Is there someway to repair this app