This question comes with a bit of background. Please see two other questions I\'ve recently posted that relate:
How to select text in a textbox cross-browser
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Oh man, I just figured it out. This bug probably won't happen to you on a real website. It's happening because you are updating the DOM adding a "*" to the message div. When you do this, it pushes the content of the page down. This moves the top text box to where the mouse is, and the mouseup event is triggered on the top text box, causing both text boxes to fire a setTimeout and getting in an infinite loop. Total dibs on reporting this.
edit: it's probably not the mouseup event. looks like chrome thinks you are legit focusing on both. Here's the bug test case for Chrome: http://jsfiddle.net/delvarworld/AnBE8/
edit2: This happens in Safari too. Most likely a webkit issue.
tldr simple workaround is to not update the dom in a way that causes reflow on the focus event, as in get rid of the html() line
You could also try:
$('input[type="text"]').live('mouseup', function (event) {
Which works in Chrome for me