Help with jQuery UI Autocomplete with ability to TAB away

Question

I've got some jQuery code written to enable autocomplete on an input field.

I'm having two issues with it that I can't seem to fix.

1. Tabbing away from the field will not populate the input. What I need is for either the FIRST suggestion to populate the field if nothing is selected(clicked or selected via up/down) OR for the highlighted item to be populated in the field. (note: highlighting is done via up/down arrows)
2. When using the up/down arrows I need the input to display the "LABEL" and not the "VALUE" Currently pressing up/down will populate the input the the VALUE.

Any advice will be greatly appreciated.

Here is my JSBIN testing ground.
http://jsbin.com/iyedo3/2

Note: the <input id="dummy" /> field is just there to give you something to "tab" over to. If it's removed the help area is expanded.