URL error on homepage field

I have been testing this module and I am getting the following error.

when the comment is submitted, Drupal displays the following message:

The URL of your homepage is not valid. Remember that it must be fully qualified, i.e. of the form http://example.com/directory.

It seems that when the homepage field is left empty, compact forms auto completes it using the label.
When i poked around in firebug, i got the following code:

<input id="edit-homepage" class="form-text error comment-processed compact-form-field" type="text" onfocus="if (this.value == 'homepage') {this.value = '';}" onblur="if (this.value == '') {this.value = 'homepage';}" value="homepage" size="30" name="homepage" maxlength="255"/>

I took a couple of screenshots to help anyone who is taking a look at this.