Hi,

I want to have the system send an email to a registered user based on the information they entered into a form. Is it possible to have the system create and send an email on the fly based on form data?

I've not yet used Axon but the featureset looks both impressive and unique.  Chris truly seems to have a knack for turning out original modules (I have an OnyakTech subscription).
 
Adding my own response (with apologies to Chris)...
You can create custom forms and respond with custom-content email based on form input with both XMOD and with Dynamic forms.  If your need directly involves the user regsitration process, you can also do this with Dynamic Registration.  All of these products are excellent though they certainly vary in featuresets.  XMOD is good for creating lots of forms without bloating your set of DB tables (other "forms" solutions create a new DB table for each new form definition).  Dynamic forms is good for performing DB tasks based on form input plus it has a very friendly form creator/editor.  Dynamic Registration is good for custom user signup forms, taking payments for security role membership, custom "weclome" emails (including file attachments), and more.
 
Now, with that said, I can't say I've ever seen an email-centric module with the features listed in Chris' Axon module -- I'd say it's definitely worth checking out! 
  
Good luck-
-mamlin