Your script is running to early. You need to use the document ready event to launch the script, or move it to the bottom of the page. I prefer the document ready event. See below:
<script type="text/javascript">
$(function() {
$('[placeholder]').focus(function() {
var input = $(this);
if (input.val() == input.attr('placeholder')) {
input.val('');
input.removeClass('placeholder');
}
}).blur(function() {
var input = $(this);
if (input.val() == '' || input.val() == input.attr('placeholder')) {
input.addClass('placeholder');
input.val(input.attr('placeholder'));
}
}).blur().parents('form').submit(function() {
$(this).find('[placeholder]').each(function() {
var input = $(this);
if (input.val() == input.attr('placeholder')) {
input.val('');
}
})
});
});
</script>