"But the thing is I also want to be able to add textboxes etc in this popup window thru the form designer."
It's unclear from your description at what stage in the development process you're in. If you haven't already figured it out, to create a new Form you click on Project --> Add Windows Form, then type in a name for the form and hit the "Add" button. Now you can add controls to your form as you'd expect.
When it comes time to display it, follow the advice of the other posts to create an instance and call Show() or ShowDialog() as appropriate.