IMO, we're missing some information exchange here.
The OP is not describing why he thinks it doesn't work. And I'm not sure I even understand anymore the way it is supposed to work.
When I try his code, Form2.Show causes the form to become not only visible but also to have focus. So neither Form1 nor Edit1 have focus. Edit1.SetFocus doesn't force focus to return to Form1 and Edit1 is not focused as a result. Should the form and control be focused? When I change focus to Form1 by clicking on its Title bar - Edit1 does in fact have focus.
So either his expectations are wrong (that set focus causes the parent form to be focused) or the SetFocus code is wrong.