We report on the first measurement of spin-correlation parameters in quasifree electron scattering from vector-polarized deuterium. Polarized electrons were injected into an electron storage ring at a beam energy of 720 MeV. A Siberian snake was employed to preserve longitudinal polarization at the interaction point. Vector-polarized deuterium was produced by an atomic beam source and injected into an open-ended cylindrical cell, internal to the electron storage ring. The spin correlation parameter $A^V_{ed}$ was measured for the reaction $^2 vec{rm H}(vec e,e^prime n)p$ at a four-momentum transfer squared of 0.21~(GeV/$c$)$^2$ from which a value for the charge form factor of the neutron was extracted.