diff --git a/browser/components/search/content/search.xml b/browser/components/search/content/search.xml
index 52c2f45f294a..65f81b24ac41 100644
--- a/browser/components/search/content/search.xml
+++ b/browser/components/search/content/search.xml
@@ -122,7 +122,6 @@
 
           // Refresh the display (updating icon, etc)
           this.updateDisplay();
-          this._textbox._displayCurrentEngine();
 
           var os =
                Components.classes["@mozilla.org/observer-service;1"]
@@ -191,31 +190,8 @@
         ]]></getter>
       </property>
 
-      <property name="value"
-                onget="return this._textbox.value;">
-        <setter><![CDATA[
-          // Make sure to remove the "empty" attribute if someone is setting
-          // the search bar value to a non-empty string. Similarly, we need to
-          // add the "empty" attribute if someone is clearing the search box,
-          // but only if the search box currently doesn't have focus.
-          if (val) {
-            this.removeAttribute("empty");
-            this._textbox.value = val;
-          }
-          else {
-            if (this._textbox.hasAttribute("focused")) {
-              // Just clear the textbox
-              this._textbox.value = "";
-            }
-            else {
-              // Display the current engine
-              this._textbox._displayCurrentEngine();
-            }
-          }
-
-          return val;
-        ]]></setter>
-      </property>
+      <property name="value" onget="return this._textbox.value;"
+                             onset="return this._textbox.value = val;"/>
 
       <method name="focus">
         <body><![CDATA[
@@ -339,18 +315,13 @@
       <method name="updateDisplay">
         <body><![CDATA[
           var uri = this.currentEngine.iconURI;
-          if (uri)
-            this.setAttribute("src", uri.spec);
-          else
-            this.setAttribute("src", "");
-
-          // Update current engine display
-          if (this.hasAttribute("empty"))
-            this._textbox._displayCurrentEngine();
+          this.setAttribute("src", uri ? uri.spec : "");
 
           var name = this.currentEngine.name;
           var text = this._stringBundle.getFormattedString("searchtip", [name]);
-          this.setAttribute("tooltiptext", text);
+          this._textbox.emptyText = name;
+          this._textbox.label = text;
+          this._textbox.tooltipText = text;
         ]]></body>
       </method>
 
@@ -495,9 +466,6 @@
         <body><![CDATA[
           var textBox = this._textbox;
           var textValue = textBox.value;
-          // Ignore greyed-out hint text in "empty" searchboxes.
-          if (this.getAttribute("empty") == "true")
-            textValue = "";
 
           // Save the current value in the form history
           if (textValue) {
@@ -564,7 +532,7 @@
 
   <binding id="searchbar-textbox"
       extends="chrome://global/content/bindings/autocomplete.xml#autocomplete">
-    <implementation implements="nsIObserver nsIDOMXULLabeledControlElement">
+    <implementation implements="nsIObserver">
       <constructor><![CDATA[
         if (document.getBindingParent(this).parentNode.parentNode.localName ==
             "toolbarpaletteitem")
@@ -584,9 +552,6 @@
         } catch (ex) { }
       ]]></destructor>
 
-      <property name="label" readonly="true"
-                onget="return '&searchItem.title; ' + 
-                      document.getBindingParent(this).currentEngine.name;"/>
       <field name="_stringBundle"/>
       <field name="_formHistSvc"/>
       <field name="_prefBranch"/>
@@ -710,28 +675,6 @@
         </body>
       </method>
 
-      <!-- Displays a grayed-out hint string containing the name of the
-           current search engine in the search text box.  (It makes it gray
-           by setting an empty="true" attribute on the searchbox element.)
-      -->
-      <method name="_displayCurrentEngine">
-        <body><![CDATA[
-          var searchbar = document.getBindingParent(this);
-
-          // This section is a wee bit hacky; without the timeout, the CSS
-          // style corresponding to the "empty" attribute doesn't kick in
-          // until the text has changed, leading to an unpleasant moment
-          // where the engine name flashes black before turning gray.
-          searchbar.setAttribute("empty", "true");
-
-          var searchTextbox = this;
-          setTimeout(function() {
-            if (searchbar.getAttribute("empty") == "true")
-              searchTextbox.value = searchbar.currentEngine.name;
-          }, 0);
-        ]]></body>
-      </method>
-
       <!-- overload |onTextEntered| in autocomplete.xml -->
       <method name="onTextEntered">
         <parameter name="aEvent"/>
@@ -785,12 +728,7 @@
           var data = transferUtils.retrieveURLFromData(aXferData.data,
                          aXferData.flavour.contentType);
           if (data) {
-            // Remove the search bar's empty attribute, since we're setting
-            // a value without focusing the textbox. If it's not empty, this
-            // won't do anything. This can be removed if bug 280635 is fixed.
-            document.getBindingParent(this.mOuter).removeAttribute("empty");
             this.mOuter.value = data;
-
             this.mOuter.onTextEntered(aEvent);
           }
         },
@@ -833,20 +771,6 @@
         nsDragAndDrop.drop(event, this.searchbarDNDObserver);
       </handler>
 
-      <handler event="focus" phase="capturing"><![CDATA[
-        var searchbar = document.getBindingParent(this);
-        if (searchbar.getAttribute("empty") == "true") {
-          searchbar.removeAttribute("empty");
-          this.value = "";
-        }
-      ]]></handler>
-
-      <handler event="blur" phase="capturing"><![CDATA[
-        var searchbar = document.getBindingParent(this);
-        if (this.value == "")
-          this._displayCurrentEngine();
-      ]]></handler>
-
     </handlers>
   </binding>
 </bindings>
diff --git a/browser/themes/gnomestripe/browser/browser.css b/browser/themes/gnomestripe/browser/browser.css
index 40fa340b4676..947f0fc090eb 100644
--- a/browser/themes/gnomestripe/browser/browser.css
+++ b/browser/themes/gnomestripe/browser/browser.css
@@ -60,21 +60,6 @@
   min-height: 26px;
 }
 
-#searchbar[empty="true"] > .searchbar-textbox {
-  color: GrayText;
-  direction: ltr !important;
-}
-
-#searchbar[empty="true"] > .searchbar-textbox > hbox > hbox > html|input {
-  direction: ltr !important;
-  text-align: left !important;
-}
-
-#searchbar[chromedir="rtl"][empty="true"] > .searchbar-textbox > hbox > hbox > html|input {
-  direction: rtl !important;
-  text-align: right !important;
-}
-
 #wrapper-search-container #searchbar html|*.textbox-input {
   visibility: hidden;
 }
diff --git a/browser/themes/pinstripe/browser/browser.css b/browser/themes/pinstripe/browser/browser.css
index 19cebeebf32b..330bd2395e0f 100755
--- a/browser/themes/pinstripe/browser/browser.css
+++ b/browser/themes/pinstripe/browser/browser.css
@@ -51,15 +51,6 @@
 
 /* ----- SEARCH FIELD ----- */
 
-#searchbar[empty="true"] > .searchbar-textbox {
-  color: GrayText;
-}
-
-#searchbar[empty="true"] html|input {
-  direction: ltr !important;
-  text-align: left !important;
-}
-
 #wrapper-search-container #searchbar html|*.textbox-input {
   visibility: hidden;
 }
diff --git a/browser/themes/winstripe/browser/browser.css b/browser/themes/winstripe/browser/browser.css
index 2ac7a980ecd2..8e74877a5d7d 100644
--- a/browser/themes/winstripe/browser/browser.css
+++ b/browser/themes/winstripe/browser/browser.css
@@ -58,21 +58,6 @@
   min-height: 26px;
 }
 
-#searchbar[empty="true"] > .searchbar-textbox {
-  color: GrayText;
-  direction: ltr !important;
-}
-
-#searchbar[empty="true"] > .searchbar-textbox > hbox > hbox > html|input {
-  direction: ltr !important;
-  text-align: left !important;
-}
-
-#searchbar[chromedir="rtl"][empty="true"] > .searchbar-textbox > hbox > hbox > html|input {
-  direction: rtl !important;
-  text-align: right !important;
-}
-
 #wrapper-search-container #searchbar html|*.textbox-input {
   visibility: hidden;
 }
diff --git a/toolkit/content/tests/widgets/Makefile.in b/toolkit/content/tests/widgets/Makefile.in
index f0faec7f83c6..79f8875d094d 100644
--- a/toolkit/content/tests/widgets/Makefile.in
+++ b/toolkit/content/tests/widgets/Makefile.in
@@ -82,6 +82,7 @@ _TEST_FILES = 	test_bug360220.xul \
 		test_tree_hier_cell.xul \
 		test_tree_column_reorder.xul \
 		tree_shared.js \
+		test_textbox_emptytext.xul \
 		test_textbox_number.xul \
 		xul_selectcontrol.js \
 		test_popupincontent.xul \
diff --git a/toolkit/content/tests/widgets/test_textbox_emptytext.xul b/toolkit/content/tests/widgets/test_textbox_emptytext.xul
new file mode 100644
index 000000000000..23e73cf33fc5
--- /dev/null
+++ b/toolkit/content/tests/widgets/test_textbox_emptytext.xul
@@ -0,0 +1,47 @@
+<?xml version="1.0"?>
+<?xml-stylesheet href="chrome://global/skin" type="text/css"?>
+<?xml-stylesheet href="/tests/SimpleTest/test.css" type="text/css"?>
+<!--
+  XUL Widget Test for textbox with emptyText
+  -->
+<window title="Textbox with emptyText test" width="500" height="600"
+        onfocus="if (!gDone) { gDone = true; doTests(); }"
+        xmlns="http://www.mozilla.org/keymaster/gatekeeper/there.is.only.xul">
+  <script type="application/javascript" src="/MochiKit/packed.js"></script>
+  <script type="application/javascript" src="/tests/SimpleTest/SimpleTest.js"></script>
+
+  <hbox>
+    <textbox id="t1"/>
+  </hbox>
+
+  <!-- test resuls are displayed in the html:body -->
+  <body xmlns="http://www.w3.org/1999/xhtml" style="height: 300px; overflow: auto;"/>
+
+  <!-- test code goes here -->
+  <script type="application/javascript"><![CDATA[
+
+var gDone = false;
+
+SimpleTest.waitForExplicitFinish();
+
+function doTests() {
+  var t1 = $("t1");
+
+  t1.emptyText = 1;
+  ok("1" === t1.label,     "emptyText exposed as label");
+  ok(""  === t1.value,     "emptyText not exposed as value");
+
+  t1.label = 2;
+  ok("2" === t1.label,     "label can be set explicitly");
+  ok("1" === t1.emptyText, "emptyText persists after setting label");
+
+  t1.value = 3;
+  ok("3" === t1.value,     "value setter/getter works while emptyText is present");
+  ok("1" === t1.emptyText, "emptyText persists after setting value");
+
+  SimpleTest.finish();
+}
+
+  ]]></script>
+
+</window>
diff --git a/toolkit/content/widgets/autocomplete.xml b/toolkit/content/widgets/autocomplete.xml
index 39e85328aa41..e87f34f6abe4 100644
--- a/toolkit/content/widgets/autocomplete.xml
+++ b/toolkit/content/widgets/autocomplete.xml
@@ -82,10 +82,6 @@
       <field name="mEnterEvent">null</field>
       <field name="mConsumeRollupEvent">false</field>
 
-      <field name="mInputElt">
-        document.getAnonymousElementByAttribute(this, "anonid", "input");
-      </field>
-
       <constructor><![CDATA[
         mController = Components.classes["@mozilla.org/autocomplete/controller;1"].
                         getService(Components.interfaces.nsIAutoCompleteController);
@@ -200,7 +196,7 @@
         <parameter name="aStartIndex"/>
         <parameter name="aEndIndex"/>
         <body><![CDATA[
-          this.mInputElt.setSelectionRange(aStartIndex, aEndIndex);
+          this.inputField.setSelectionRange(aStartIndex, aEndIndex);
         ]]></body>
       </method>
 
@@ -238,8 +234,6 @@
                 onset="this.setAttribute('crop',val); return val;"
                 onget="return this.getAttribute('crop');"/>
 
-      <property name="label" readonly="true" onget="return this.mInputElt.value;"/>
-
       <property name="open"
                 onget="return this.getAttribute('open') == 'true';">
         <setter><![CDATA[
@@ -257,14 +251,22 @@
       <!-- =================== PUBLIC MEMBERS =================== -->
 
       <property name="value"
-                onget="return this.mInputElt.value;">
+                onget="return this.hasAttribute('empty') ? '' : this.inputField.value;">
         <setter><![CDATA[
           this.mIgnoreInput = true;
-          this.mInputElt.value = val;
+          if (val) {
+            // clear the emptyText _before_ setting a new non-empty value
+            this._clearEmptyText();
+            this.inputField.value = val;
+          } else {
+            // display the emptyText _after_ setting a value that's an empty string
+            this.inputField.value = val;
+            this._updateVisibleText();
+          }
           this.mIgnoreInput = false;
           var event = document.createEvent('Events');
           event.initEvent('ValueChange', true, true);
-          this.mInputElt.dispatchEvent(event);
+          this.inputField.dispatchEvent(event);
           return val;
         ]]></setter>
       </property>
@@ -516,7 +518,7 @@
       <handler event="focus" phase="capturing">
         <![CDATA[
           this.attachController(); 
-          this.mInputElt.parentNode.parentNode.setAttribute('focused', 'true');
+          this.inputField.parentNode.parentNode.setAttribute('focused', 'true');
         ]]>
       </handler>
 
@@ -524,7 +526,7 @@
         <![CDATA[
           if (!this._dontBlur) {
             this.detachController();
-            this.mInputElt.parentNode.parentNode.removeAttribute('focused');
+            this.inputField.parentNode.parentNode.removeAttribute('focused');
           }
         ]]>
       </handler>
diff --git a/toolkit/content/widgets/textbox.xml b/toolkit/content/widgets/textbox.xml
index 32a3b4de730c..6e8c93e958b8 100644
--- a/toolkit/content/widgets/textbox.xml
+++ b/toolkit/content/widgets/textbox.xml
@@ -24,7 +24,7 @@
       </xul:hbox>
     </content>
 
-    <implementation implements="nsIAccessibleProvider, nsIDOMXULTextBoxElement">
+    <implementation implements="nsIAccessibleProvider, nsIDOMXULTextBoxElement, nsIDOMXULLabeledControlElement">
       <property name="accessibleType" readonly="true">
         <getter>
           <![CDATA[
@@ -33,6 +33,12 @@
         </getter>
       </property>
 
+      <!-- nsIDOMXULLabeledControlElement -->
+      <field name="crop">""</field>
+      <field name="image">""</field>
+      <field name="command">""</field>
+      <field name="accessKey">""</field>
+
       <field name="mInputField">null</field>
       <field name="mIgnoreClick">false</field>
       <field name="mIgnoreFocus">false</field>
@@ -45,10 +51,30 @@
         ]]></getter>
       </property>
 
-      <property name="value"      onset="this.inputField.value = val; return val;"
-                                  onget="return this.inputField.value;"/>
+      <property name="value"
+                onget="return this.hasAttribute('empty') ? '' : this.inputField.value;">
+        <setter><![CDATA[
+          if (val) {
+            // clear the emptyText _before_ setting a new non-empty value
+            this._clearEmptyText();
+            this.inputField.value = val;
+          } else {
+            // display the emptyText _after_ setting a value that's an empty string
+            this.inputField.value = val;
+            this._updateVisibleText();
+          }
+          return val;
+        ]]></setter>
+      </property>
       <property name="defaultValue" onset="this.inputField.defaultValue = val; return val;"
                                   onget="return this.inputField.defaultValue;"/>
+      <property name="label"      onset="this.setAttribute('label', val); return val;"
+                                  onget="return this.getAttribute('label') ||
+                                                (this.labelElement ? this.labelElement.value :
+                                                 this.emptyText);"/>
+      <property name="emptyText"  onget="return this.getAttribute('emptytext') || '';"
+                                  onset="this.setAttribute('emptytext', val);
+                                         this._updateVisibleText(); return val;" />
       <property name="type"       onset="if (val) this.setAttribute('type', val);
                                          else this.removeAttribute('type'); return val;"
                                   onget="return this.getAttribute('type');"/>
@@ -131,16 +157,53 @@
         ]]></body>
       </method>
 
+      <method name="_updateVisibleText">
+        <body><![CDATA[
+          if (!this.value && this.emptyText) {
+            // This section is a wee bit hacky; without the timeout, the CSS
+            // style corresponding to the "empty" attribute doesn't kick in
+            // until the text has changed, leading to an unpleasant moment
+            // where the emptyText flashes black before turning gray.
+            this.setAttribute("empty", true);
+
+            setTimeout(function (textbox) {
+              if (textbox.hasAttribute("empty")) {
+                try {
+                  textbox.editor.transactionManager.beginBatch();
+                } catch (e) {}
+                textbox.inputField.value = textbox.emptyText;
+              }
+            }, 0, this);
+          }
+        ]]></body>
+      </method>
+
+      <method name="_clearEmptyText">
+        <body><![CDATA[
+          if (this.hasAttribute("empty")) {
+            this.inputField.value = "";
+            try {
+              this.editor.transactionManager.endBatch();
+            } catch (e) {}
+            this.removeAttribute("empty");
+          }
+        ]]></body>
+      </method>
+
       <constructor><![CDATA[
         var str = this.boxObject.getProperty("value");
         if (str) {
           this.inputField.value = str;
           this.boxObject.removeProperty("value");
         }
+
         // this.editor may not be initialized yet in
         // bindings that inherit from xul:textbox, so
         // do this after construction
-        setTimeout(function (a) { a._setNewlineHandling(); }, 0, this);
+        setTimeout(function (a) {
+          a._updateVisibleText();
+          a._setNewlineHandling();
+        }, 0, this);
       ]]></constructor>
 
       <destructor>
@@ -156,6 +219,8 @@
     <handlers>
       <handler event="focus" phase="capturing">
         <![CDATA[
+          this._clearEmptyText();
+
           if (!this.hasAttribute("focused")) {
             if (event.originalTarget == this)
               this.inputField.focus(); // Forward focus to actual HTML input
@@ -174,9 +239,18 @@
       <handler event="blur" phase="capturing">
         <![CDATA[
           this.removeAttribute('focused');
+          this._updateVisibleText();
         ]]>
       </handler>
 
+      <handler event="dragover" phase="capturing">
+        this._clearEmptyText();
+      </handler>
+
+      <handler event="dragexit" phase="capturing">
+        this._updateVisibleText();
+      </handler>
+
       <handler event="mousedown">
         <![CDATA[
           this.mIgnoreClick = this.hasAttribute("focused");
diff --git a/toolkit/themes/gnomestripe/global/textbox.css b/toolkit/themes/gnomestripe/global/textbox.css
index 60411dc460c5..f48a62a2877a 100644
--- a/toolkit/themes/gnomestripe/global/textbox.css
+++ b/toolkit/themes/gnomestripe/global/textbox.css
@@ -59,7 +59,11 @@ textbox
   background-color: -moz-Field;
   color: -moz-FieldText;
 }
-    
+
+textbox[empty="true"] {
+  color: GrayText;
+}
+
 html|*.textbox-input, 
 html|*.textbox-textarea {
   margin: 0px !important;
diff --git a/toolkit/themes/pinstripe/global/textbox.css b/toolkit/themes/pinstripe/global/textbox.css
index 76266be10f6f..a10d6f015cf6 100644
--- a/toolkit/themes/pinstripe/global/textbox.css
+++ b/toolkit/themes/pinstripe/global/textbox.css
@@ -63,7 +63,11 @@ textbox {
   background-color: -moz-Field;
   color: -moz-FieldText;
 }
-    
+
+textbox[empty="true"] {
+  color: GrayText;
+}
+
 html|*.textbox-input, 
 html|*.textbox-textarea {
   margin: 0px !important;
diff --git a/toolkit/themes/winstripe/global/textbox.css b/toolkit/themes/winstripe/global/textbox.css
index 9fde72a4a354..3b716b24da18 100644
--- a/toolkit/themes/winstripe/global/textbox.css
+++ b/toolkit/themes/winstripe/global/textbox.css
@@ -59,7 +59,11 @@ textbox
   background-color: -moz-Field;
   color: -moz-FieldText;
 }
-    
+
+textbox[empty="true"] {
+  color: GrayText;
+}
+
 html|*.textbox-input, 
 html|*.textbox-textarea {
   margin: 0px !important;
