The following will save the previous value to your input's data then look for and compare that value upon blur. It also makes use of jQuery's chaining ability. You don't have to recall input everytime.
$('input').css("color", "grey")
.focus(function () {
$(this).css("color", "black")
.data("prevValue", $(this).val());
})
.blur(function () {
if ($(this).val() == $(this).data("prevValue")) $(this).css("color", "grey");
});
HOWEVER If you want something more like the forms you see on other sites, you might try the following:
$(function(){
$('input').css("color", "grey")
.each(function(i) { $(this).data("baseValue", $(this).val()) })
.focus(function(e) {
$(this).css("color", "black");
if ($(this).val() == $(this).data("baseValue")) $(this).val("");
})
.blur(function(e) {
if ($(this).val() == "") $(this).css("color", "grey").val($(this).data("baseValue"));
});
})