Developer, Former MVP, now at Microsoft - Best of 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013
In my Translator by Moth app, in the textbox where the user enters a translation I show a "prompt" for the user that goes away when they tap on it to enter text (and returns if the textbox remains/becomes empty). See screenshot on the right (or download the free app to experience it).
Back in June 2006 I had shown how to achieve this for Windows Vista (TextBox prompt), and a month later implemented a pure managed version for both desktop and Windows Mobile: TextBox with Cue Banner.
So when I encountered the same need for my WP7 app, the path of least resistance for me was to convert my existing code to work for the phone.
Usage:
It is that simple! You can grab my class here: TextBoxWithPrompt.cs
Note, that there are many alternative (probably better) xaml-based solutions, so search around for those. Like I said, since I had solved this before, it was easier for my scenario to re-use my implementation – this does not represent best practice :-)