I got this problem solved.
Solution:
Create new Adobe Livecyle form
Have an xsd created for the schema of what is going to be in the form
Import that data model when creating the form
Right-click on xsd data connection in form. Click Connection Properties.
Click Next.
Click the checkbox "Embed XML Schema" (This is what I was missing).
Click Finish.
That's it to make the form show up in the SharePoint Adobe Form Library.
