In MOSS 2007 you can change the order  the items are displayed for New Item
by got to

Settings > List Settings > column  ordering

Column ordering is under the second part of the Columns area.

That is exactly what we are doint, but it does not change the order
on the new item  form.

Could the New form have been edited in SharePoint Designer? If the Web
Part on that instance page has been customized, changes to the order
will not affect the display on that page.

We do not allow our users to use sharepoint designer yet. We have
had way to many migrations issues do to FrontPage, so we don't trust
it yet...

I solved it by adding  a new column. Why on earth that worked I don't
know. But it is fixed.

What happens is that the "Column Ordering" link handles the order  of
how the list  displays but not necessarily the form you use to add a
new item. What you need is to edit NewItem.aspx in SharePoint
designer. You can find a nice tutorial on how to do it here:
blah.winsmarts.com/2007-5-Customize_the_-and-quot;NewFormaspx-
and-quot;_page_for_a_SharePoint_List.aspx