Index: compact_forms.js
===================================================================
RCS file: /cvs/drupal-contrib/contributions/modules/compact_forms/compact_forms.js,v
retrieving revision 1.9
diff -u -p -r1.9 compact_forms.js
--- compact_forms.js	5 Sep 2010 01:50:37 -0000	1.9
+++ compact_forms.js	5 Sep 2010 23:48:29 -0000
@@ -21,8 +21,10 @@ $.fn.compactForm = function (stars) {
       if (!$field.length || !$field.is('input:text,input:password,textarea')) {
         return;
       }
+      // Store initial value in case the browser auto-filled it
+      var $initial_value = $field.val();
 
-      if ($field.val() != '') {
+      if ($initial_value != '') {
         // Firefox doesn't like .hide() here for some reason.
         $label.css('display', 'none');
       }
@@ -39,7 +41,7 @@ $.fn.compactForm = function (stars) {
       }
 
       $field.focus(function () {
-        if ($field.val() === '') {
+        if ($field.val() === $initial_value || $field.val() === '') {
           $label.fadeOut('fast');
         }
       });