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I have been working with XOOPS for about a week and just installed Formulize with the same problem identified in this thread. The solution appears to be in the Formulize README file (go figure!), here is the quote:
FORMULIZE IS NOT DESIGNED TO BE LISTED IN THE MAIN MENU!
On the System Admin->Modules page, set the Order for Formulize to '0' (to hide it). To access the forms, you use the Form Menu block. You will need to give access rights to that block to every group that you want to have access to the forms. You will then also need to configure the visibility settings and location of the Form Menu block so that it appears properly on your site.
By habit (ok, a week) I was expecting to use a main menu trigger, once I set it to only use a menu block instead it works fine now.
FORMULIZE IS NOT DESIGNED TO BE LISTED IN THE MAIN MENU!
On the System Admin->Modules page, set the Order for Formulize to '0' (to hide it). To access the forms, you use the Form Menu block. You will need to give access rights to that block to every group that you want to have access to the forms. You will then also need to configure the visibility settings and location of the Form Menu block so that it appears properly on your site.
By habit (ok, a week) I was expecting to use a main menu trigger, once I set it to only use a menu block instead it works fine now.

