[eluser]TheFuzzy0ne[/eluser]
You're right that you need to echo the return value from set_value(). However, set value with only the first value set retrieves the value from the post array, which of course means that the form needs to have been submitted first. In this instance, it's only useful for when validation fails and the form is redisplayed to the user. If you want to insert default values, you'll need to pass a second parameter in to the set_value() function, which is the value you want to display if the forum has not yet been submitted.
I'm not entirely sure that this is what you're getting at though, so please let me know if I haven't answered your question.
If you need some more inspiration, check out my [url="http://ellislab.com/forums/viewthread/107773/"]CodeIgniter Resources thread[/url].