Problems trapping AJAX'ed form input click event
Because the form is being loaded via ajax, your click handler is not binding at the right time. You need to use Drupal.behaviors, the context argument, and possibly the one() method to attach this.

Or a less drupally (but better jQuery) solution would be to use delegated events like

$(document).click(function(event)) {
  if ($(event.target).is(".form-submit") {
    alert('test');
  }
});


Note: delegated events are way more elegant in modern jQuery, the on() method is great for this. But the above is probably the best you can do in jQuery 1.4.