After a long time (50+ installation tried), successfully installed form11g on 64 bit. Now steps are very simple but i am sure, there will be different ways of installation. Try the below too, if you need. (Thanks to GS, who has guided me for java installation).

1. Use administrator rights for the user and do not provide computer name with special characters like hyphen or underscore
2. Remove unwanted software and make sure that PATH environmental variable does not have “Program Files (x86)” during the installation
3. Change the performance settings with virtual memory under my computer
4. Setup hosts file under windows for the system (C:\Windows\System32\drivers\etc).
5. Change user account control setting into low under action center – to avoid windows security issues
6. install latest 32 bit JDK into c:\java32 and setup the JAVA_HOME = C:\java32 in environment variable
7. install weblogic server using c:\java32\bin\java -jar wls1032_generic.jar (all setup.exe has to be under Compatibility of Windows XP-SP3 including win32 folder)
8. install the JDeveloper if you want (required for creating web services)
9. install forms (do not select configure) 32 bit version on middleware, oracle_home name is forms11g
10. after installation open the folder (C:\Oracle\Middleware\forms11g\bin) and check the file msvcr71.dll. If not available copy it from other locations.
11. Change the compatibility mode into XP-SP3 for setup.exe (C:\Oracle\Middleware\forms11g\oui\bin)
12. configure the forms11g using config.bat (shortcut available under start menu)
13. Provide username, password, domain name, instance name
14. Remove (uncheck) all the items including clustered except forms and reports
15. There should not be any error, if you get error, please contact me by csenthilmurugan@hotmail.com.
16. After the installation, you can start forms11g
17. Tnsnames.ora is available under instance/config name (eg. C:\Oracle\Middleware\fr_instance\config)
18. formsweb.cfg is available under domain name (eg.C:\Oracle\Middleware\user_projects\domains\FormsReports\servers\WLS_FORMS\stage\formsapp\11.1.1\formsapp\config).

Wish you all the best & keep enjoying forms11g.

Note: oracle 8.0.5 installation file does not check the pre-requirements, now forms11g does not check the OS-32 bit or 64 bit/java bit version. Because of this, oracle has gained bad name from our forms developers for installation. Anyway learned thru hard way.