Label "Password" of login block not disappear when inputting (IE8)

Thanks for the great module! I used it in new.meltonfoundation.org, it works (almostly) great.
However, one of our tester told me that "After entering the password the gray 'password' text still shows on top of the dots."
A screenshot is attached as well as a IE8 about form with detailed version.
The site is using "Salamander 1 " sub-theme of "Salamander Skins".
Thank you for your attention!