Have you ever visit Apple’s MobileMe website? The login screen has form labels that are written within the value of their associated input field.
Inline labels are nothing new – in fact the easiest way to label a field is to simply set the field value up front and blow it away when the field gains focus. This is handy way for designers to save space and make their designs cleaner all-around. Unfortunately for us developers, simply setting the input value isn’t very semantic or usable then you can’t do it simple. I’ve just use a little jQuery to make it all happen.