First step is to create the form. I usually have all my forms inside a list:

UPDATE: It's necessary to turn off the "autocomplete" so the inputs don't get messed up.

markup
<form action="">
  <ul>
   <li>
    <label for="username">Username</label>
    <input id="username" type="text" autocomplete="off" />
   </li>
   <li>
    <label for="password">Password</label>
    <input id="password" type="password" autocomplete="off" />
   </li>
   <li>
    <input type="submit" value="login" />
   </li>
  </ul>
</form>

Don't forget the "for" attribute, the script will rely on it. Go ahead and add the following CSS:

CSS
form li { position: relative; }
label {
  position: absolute;
  top: 5px; // adjust as needed
  left: 5px;
}
//remove absolute position if the label comes after
//the input. Eg. a checkbox with a text next to it
input + label { position: static; }

Now the final touch. With some jQuery magic, lets make the label disappear on focus.

jQuery
//loop through all text inputs, password inputs and textarea
var inputs = $('input[type="text"], textarea, input[type="password"]');

// remove label on focus
inputs.focus(function(){
  $('label[for="'+$(this).attr('id')+'"]').hide();
});
inputs.blur(function(){
  var that = $(this);
  if (that.val() == ""){
    $('label[for="'+that.attr('id')+'"]').show();
  }
});
inputs.blur();

Demo

jQuery Code
$('.scrollPage').click(function() {
   var elementClicked = $(this).attr("href");
   var destination = $(elementClicked).offset().top;
   $("html:not(:animated),body:not(:animated)").animate({ scrollTop: destination-20}, 500 );
   return false;
});

The code gets the href from the anchor and uses it as the target element. If you want to adjust the scroll speed just change the 500.

Don't forget to checkout the live demo

Browser Support

• Firefox
• Safari
• Chrome
• Opera
• Internet Explore 7 & 8
• Internet Explore 6