Here is what you need. You need to correctly escape quotes
inside onblur/onfocus:
try this inside php code:
<input class=\"input_reg\" type=\"text\" name=\"username\" size=\"40\" maxlength=\"12\" value=\"Username\" onblur='if (this.value == \"\") {this.value = \"Username\";}' onfocus='if (this.value == \"Username\") {this.value = \"\";}'>
.
<input class='input_reg' type='text' name='email' size='40' maxlength='50' value='Email Address' onblur='if (this.value == \"\") {this.value = \"Email Address\";}' onfocus='if (this.value == \"Email Address\") {this.value = \"\";}'>
.
<input class='input_reg' type='password' name='password' size='40' maxlength='12' value='Password' onblur='if (this.value == \"\") {this.value = \"Password\";}' onfocus='if (this.value == \"Password\") {this.value = \"\";}'>