Does this element only work with ZOO 2.5?
No, there are packages for ZOO 2.5 and ZOO 2.4 that can be installed on Joomla 1.5 and Joomla 1.7.
How custom can I get with the forms? Can I set my own name and value? And can I add a form action?
This is a "must have" extension for client support. Great Job Mustaq, it filled a need I didn't know I had till I installed it!