$form['step1'] = array(
    "#type" => "fieldset",
    "#title" => t("What type of point would you like to add"),
  );

  foreach ( $validtypes as $type => $info ) {
    $form['step1']['type'][$type] = array(
      '#type' => 'radio',
      '#name' => 'type',
      '#title' => $info['name'],
      '#description' => $info['description'],
      '#return_value' => $type,
    );
  }

  $form['step1']['default'] = array(
    '#type' => 'checkbox',
    '#title' => t('Please use this selection as my default'),
    '#default_value' => 0,
  );

  $form["submitbtn"] = array(
    "#type" => "submit",
    "#value" => t("Next")
  );

  return $form;

The $_POST is how it should be:

Array
(
    [type] => article
    [op] => Next
    [form_build_id] => 35032606e64f1978fc8f61c4847bbcd3
    [form_token] => 1a47ceb7ca7e361d4be1d97533ead120
    [form_id] => imsaddpoint_pointform
)

The $form_values is not correct:

Array
(
    [contact] => 
    [hca] => 
    [default] => 0
    [op] => Next
    [submitbtn] => Next
    [form_build_id] => 35032606e64f1978fc8f61c4847bbcd3
    [form_token] => 1a47ceb7ca7e361d4be1d97533ead120
    [form_id] => imsaddpoint_pointform
)