Submit button highlights required fields that are already filled in

I believe the hightlight is for "required" field's, not "Unfilled" fields. If you want to highlight the "Unfilled" fields, you'll need to put in your own checking by adding a JavaScript action to the submit button. This is not a hard JavaScript: Here's a simple example, place it in a "Run a JavaScript" action in the submit button's MouseDown event.

app.runtimeHighlight = false;
for(var i=0;i<this.numFields;i++)
{
var cFld = this.getNthFieldName(i);
var oFld = this.getField(cFld);
if(oFld.required && oFld.value == "")
oFld.fillColor = color.red;
else
oFld.fillColor = color.transparent;
}

Sorry I may have confused you by saying "highlight". Both text fields are "required fields" and when I hit the submit button if only one of the to fields are filled then BOTH are identified as required fields that need to be filled in before the form can be submitted.(they are both marked in red) Shouldn't only the field that was not filled out come up marked in red. (as opposed to both)

No, they are still both required whether or not they are filled in or not.

I think there may be some miscommunication here. I will try to explain more clearly.

I've made a form. It has 3 elements. (Text field "A", Text field "B" and a submit button)

Both text field "A" and "B" are set to required.

If I enter text into "A" and hit submit I get the following message. "At lease one required field was empty on export. Please fill in the required fields (highlighted) before continuing)

Now this is the part that I think we are not understanding each other:

If Acrobat is working properly, it should highlight ONLY the required fields that still need to be filled in. (Text Field "B")

But the problem is that it is highlighting both fields even though the one is already filled in.

If it makes it easier to understand just create 2 text fields and a submit button and only fill in one of them and hit submit. You will see that Acrobat highlights both fields.

What makes you think that Acrobat is supposed to highlight only unfilled, required fields? Have you ever seen this behavior in Acrobat before? Is it explained like this in the documentation?

Believe me, I've done this before. I never misunderstood your quetsion. Acrobat highlights the "Required" fields. It doen't matter if they are filled in. Here is a direct quote from the Acrobat Help on the form hilighting preference.

****
Required Fields Highlight Color Opens a color picker for selecting the border color of form fields that must be filled in. The border appears for required form fields only after you attempt to submit the form.
****

It doesn't say anything about fields being filled in or not and it works the same on Acrobat 7.