I had a similar problem:
Cancel html text input
In the end, I found out that if any JavaScript updated any visual elements, all the text fields on the page had their own reset cancel history. In my case, it was a timer updating the countdown clock, which made tracking and debugging difficult. I assume this is jQuery autocomplete causing the problem here. The difference is that it updates the actual text field, not the external element, but I suspect this is the same problem. I'm sure this is a bug in IE, so you cannot do much without adding your own history functions to the text box.
This is a problem specific to Internet Explorer. I suggest you try your page using Chrome or Firefox.
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