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View Source for more information. Can easily be hooked up into any autocomplete plugin (in the examples below I'm using jQuery UI).

Check out the Github repository for full source code, further information and instructions.

Demo
$(".tagbox").tagbox();
$(".tagbox").tagbox({ 
    delimit_by_space: true
});
$(".tagbox").tagbox()
    .find(".input input")
    .autocomplete();