Validations is working fine, if valid email is entered, displays a hidden box if not valid is showing a message error on a overlay, but how to check if keydown or return? any ideas guys?
This is my code, which can also be accessed in a jsFiddle:
function validateEmail() {
    var validEmail = /^([\w-\.]+@([\w-]+\.)+[\w-]{2,4})?$/;
    $('#user_email').blur(function(){
        if (validEmail.test(this.value)) {
            $('.masked-check').fadeIn(300)
        }
        else {
            $('.masked-check').fadeOut(300);
            $('.overlay').append('<div class="alert alert-error" id="errors"></div>');
            showOverlay($('#errors').html('Please enter a valid email...'));
        }
    }); 
}
validateEmail();
I not sure if this is the way to do it but works for me now, the only issue is not listening to a keypress keyup or keydown. Here is the updated http://jsfiddle.net/creativestudio/bKT9W/3/ I am not sure is this is the best way to do it but works for now.
    function validateEmail() {
        var validEmail = /^([\w-\.]+@([\w-]+\.)+[\w-]{2,4})?$/;
        $('#user_email').blur(function(){
        $('.masked-check').hide();
            if (validEmail.test(this.value)) {
                $('.masked-check').fadeIn(300)
            }
            else {
                $('.masked-check').fadeOut(300);
                $('.overlay').append('<div class="alert alert-error" id="errors"></div>');
                showOverlay($('#errors').html('Please enter a valid email...'));
            }
            if ($('#user_email').val()=='') {
                $('.masked-check').hide()
            }
        }); 
    }
    validateEmail();
 
     
     
     
    