Just as an aside--the reason I suggested the former is because, for my own purposes, I've wanted to display a row of buttons; and if I put these into separate forms, browsers generally seem to insert paragraph breaks between the forms, which thwarts any attempt at horizontal alignment. That's more of an HTML issue, of course.

In general, I'd agree w/ you about separating different pieces of functionality; though a general approach I've been taking recently is to have one main script which contains some dispatch code--upon receiving a new request, it determines the nature of the request, then hands it off to the appropriate handler, where each handler is generally stored in its own module.