Clearing form fields upon focus (IE8 problem)

[NZSolutions]

hey guys, i have the following code that will clear a default value in a form field upon focus and return it upon blur. now this works in chrome, ff but not on my IE8 (Windows XP). however... it does work on same browser on the website jsfiddle.net - this is doing my head in and was wondering if anyone can point me in the right direction for fixing...

<script type="application/javascript">
	$(document).ready(function() {
		
		// replaces default values in forms
		$('.default-value').each(function() {
			var default_value = this.value;
			$(this).bind('focus', function() {
				if(this.value == default_value) {
					this.value = '';
				}
			});
			$(this).bind('blur', function() {
				if(this.value == '') {
					this.value = default_value;
				}
			});
		});
		
	});
</script>

<input type="text" name="filter_name" class="default-value" value="Keyword search..." />

also, this is the jquery script i am using...

<script type="text/javascript" src="http://code.jquery.com/jquery-latest.min.js"></script>

[NZSolutions]

This is a test page I have of the function also...

http://preview.allaboutpromo.co.nz/test.php

[WolfShade]

Perplexing. It doesn't work in IE7, either. I'm trying to find the issue, but am currently at a loss.

UPDATE:
Did some Googling and found this. Have not tested it. Hopefully this will work?
http://snipplr.com/view/15360/

Here is another one, same site:
http://snipplr.com/view/55558/