Drupal7 - Customize the search form
Here is the code to be used in the theme's template.php file that will override Drupal's search form.
If no template.php is available, just go ahead and create one.
'image_button', '#src' => base_path() . path_to_theme() . '/images/search.png'); // Change with an image
// Add extra attributes to the text box so that the word Search will show up in the textarea, and hide on click
$form['search_block_form']['#attributes']['onblur'] = "if (this.value == '') {this.value = 'Search';}";
$form['search_block_form']['#attributes']['onfocus'] = "if (this.value == 'Search') {this.value = '';}";
}
}
?>
The above snippet was taken