Will the controls appear on the inherited form?
Yes. Remember that if you want to code against them in the inherited
form you will need to change their modifier to be "protected". It
defaults to private. Whenever you change anything on the base form the
IDE usually displays a little message in the status bar that says "you
must rebuild your project before any changes will be picked up by
child forms open in the designer."
Now would probably be a good time to mention that there are other
drawbacks to visual inheritance apart from the reliability of the IDE
which you will soon come up against. The biggest problem I have is
that some common controls, such as the DataGridView, do not "play
nice" with the IDE. Microsoft has marked the control as "locked under
visual inheritance". What this means is that you can't change any
properties (or add any event handlers) *in the designer* on the
inherited form. You can do it in code, but it is annoying to say the
least to be unable to add an extra column, change a heading or width
etc.
That said, visual inheritance is rather cool, and when combined with
standard class inheritance it can save a lot of coding and time.