onkeyup is enabled by default so you do not need to set it to true. If you do, you break the functionality already built into the plugin.
You have three options:
1) Leave the onkeyup option out of .validate(). This keeps onkeyup functionality enabled by default. (edit: "by default" means that validation occurs on every "key-up" event only after the field is initially validated by another event.)
DEMO: http://jsfiddle.net/ZvvTa/
2) onkeyup can be set to false to disable this option.
DEMO: http://jsfiddle.net/ZvvTa/1/
3) Replace onkeyup with your own callback function to modify how it operates. (Demo uses default function)
DEMO: http://jsfiddle.net/ZvvTa/2/
Below is the default, unmodified, onkeyup callback function:
onkeyup: function( element, event ) {
if ( event.which === 9 && this.elementValue(element) === "" ) {
return;
} else if ( element.name in this.submitted || element === this.lastElement ) {
this.element(element);
}
}
See: http://docs.jquery.com/Plugins/Validation/validate#toptions
EDIT:
By default, the plugin does not do any "key-up" validation until after the field is initially validated by another event. ("Lazy" validation)
So here is a more properly modified version of the onkeyup callback function that will provide immediate onkeyup validation. ("Eager" validation)
DEMO: http://jsfiddle.net/QfKk7/
onkeyup: function (element, event) {
if (event.which === 9 && this.elementValue(element) === "") {
return;
} else {
this.element(element);
}
}