Checks if the browser supports the HTML placeholder spec, if not, replaces it with the 'placeholder' attribute. Works in Chrome. IE7/IE8. Assuming it works in FF/Opera.

placeholder.jquery.js

/*
	Placehoder Plugin for jQuery By Stan Rozenraukh
	Usage:
		$('input').placeholder();
		or
		$('input').placeholder({
			active: 'red',
			blurred: 'green'
		});
*/

$.fn.placeholder = function(options) {

	var settings = {
		'active' : '#000',
		'blurred' : '#ccc'	
	};

	return this.each(function() {

		if (options) {
			$.extend(settings, options);
		}
		if (!('placeholder' in document.createElement('input'))) {
			var $field = $(this),
			    $form = $(this).closest('form');
				
			$field.focus(function() {
				if ($field.val() == $field.attr('placeholder')) $field.val('').css('color', settings.active);
			}).blur(function() {
				if ($field.val() == '') $field.val($field.attr('placeholder')).css('color', settings.blurred);
			});

			if ($form) {
				 $form.submit(function() {
					if ($field.val() == $field.attr('placeholder')) $field.val('');
				});
			}


			$field.blur();

		}
	});

}