Many websites today will not have labels next to their input boxes anymore. Instead they place the text inside the input box. Contact Form 7 plug in can do this out of the box, but the user has to erase what is in the box before they can type in their information. This is a) annoying and b) not user friendly at all. Fortunately there is a hack that makes this work. Special thanks to emj for this solution.
Note that this is a bit of a hack, so not sure how it will work as you upgrade to newer versions.
Second: in the contact form 7 plugin folder, edit file /modules/text.php
Third: find line 76
$html = ‘‘;
Fourth: between ‘input’ and ‘type’, add:
That should do it. It isn’t perfect, but it works pretty well.