I figured out the javaScript error... only took 14 hours. Sorry I'm a php guy not a JavaScript guy.
Anyway...
replace:
Code:
echo "<input name=vb_login_username type=text id=navbar_username onfocus=if (this.value == '$vbphrase[username]') this.value = ''"; size=10 />";
with
Code:
echo "<input name=vb_login_username type=text id=navbar_username onfocus=\"if (this.value == '$vbphrase[username]') this.value = '';\" size=10 />";
The quotation marks were missing. IE was expecting them. Hope this helps. Donation can be made to your local Animal Shelter.