diff --git a/system/helpers/form_helper.php b/system/helpers/form_helper.php
index 3cce868..d81bb7c 100644
--- a/system/helpers/form_helper.php
+++ b/system/helpers/form_helper.php
@@ -149,7 +149,7 @@
 
 		if ( ! is_array($value))
 		{
-			$form .= '<input type="hidden" name="'.$name.'" value="'.form_prep($value, $name)."\" />\n";
+			$form .= '<input type="hidden" name="'.$name.'" value="'.html_escape($value)."\" />\n";
 		}
 		else
 		{
@@ -263,7 +263,7 @@
 		}
 
 		$name = is_array($data) ? $data['name'] : $data;
-		return '<textarea '._parse_form_attributes($data, $defaults).$extra.'>'.form_prep($val, $name)."</textarea>\n";
+		return '<textarea '._parse_form_attributes($data, $defaults).$extra.'>'.html_escape($val)."</textarea>\n";
 	}
 }
 
@@ -600,44 +600,15 @@
 	 *
 	 * Formats text so that it can be safely placed in a form field in the event it has HTML tags.
 	 *
-	 * @param	string
-	 * @param	string
+	 * @deprecated	3.0.0	This function has been broken for a long time
+	 *			and is now just an alias for html_escape(). It's
+	 *			second argument is ignored.
+	 * @param	string	$str = ''
+	 * @param	string	$field_name = ''
 	 * @return	string
 	 */
 	function form_prep($str = '', $field_name = '')
 	{
-		static $prepped_fields = array();
-
-		// if the field name is an array we do this recursively
-		if (is_array($str))
-		{
-			foreach ($str as $key => $val)
-			{
-				$str[$key] = form_prep($val);
-			}
-
-			return $str;
-		}
-
-		if ($str === '')
-		{
-			return '';
-		}
-
-		// we've already prepped a field with this name
-		// @todo need to figure out a way to namespace this so
-		// that we know the *exact* field and not just one with
-		// the same name
-		if (isset($prepped_fields[$field_name]))
-		{
-			return $str;
-		}
-
-		if ($field_name !== '')
-		{
-			$prepped_fields[$field_name] = $field_name;
-		}
-
 		return html_escape($str);
 	}
 }
@@ -663,13 +634,13 @@
 		{
 			if ( ! isset($_POST[$field]))
 			{
-				return $default;
+				return html_escape($default);
 			}
 
-			return form_prep($_POST[$field], $field);
+			return html_escape($_POST[$field]);
 		}
 
-		return form_prep($OBJ->set_value($field, $default), $field);
+		return html_escape($OBJ->set_value($field, $default));
 	}
 }
 
@@ -919,7 +890,7 @@
 		{
 			if ($key === 'value')
 			{
-				$val = form_prep($val, $default['name']);
+				$val = html_escape($val);
 			}
 			elseif ($key === 'name' && ! strlen($default['name']))
 			{
diff --git a/tests/codeigniter/core/Common_test.php b/tests/codeigniter/core/Common_test.php
index 27d48ef..999b49c 100644
--- a/tests/codeigniter/core/Common_test.php
+++ b/tests/codeigniter/core/Common_test.php
@@ -2,8 +2,6 @@
 
 class Common_test extends CI_TestCase {
 
-	// ------------------------------------------------------------------------
-
 	public function test_is_php()
 	{
 		$this->assertEquals(TRUE, is_php('1.2.0'));
@@ -16,12 +14,12 @@
 	{
 		$this->assertEquals(' class="foo" id="bar"', _stringify_attributes(array('class' => 'foo', 'id' => 'bar')));
 
-		$atts = new Stdclass;
+		$atts = new stdClass;
 		$atts->class = 'foo';
 		$atts->id = 'bar';
 		$this->assertEquals(' class="foo" id="bar"', _stringify_attributes($atts));
 
-		$atts = new Stdclass;
+		$atts = new stdClass;
 		$this->assertEquals('', _stringify_attributes($atts));
 
 		$this->assertEquals(' class="foo" id="bar"', _stringify_attributes('class="foo" id="bar"'));
@@ -35,10 +33,20 @@
 	{
 		$this->assertEquals('width=800,height=600', _stringify_attributes(array('width' => '800', 'height' => '600'), TRUE));
 
-		$atts = new Stdclass;
+		$atts = new stdClass;
 		$atts->width = 800;
 		$atts->height = 600;
 		$this->assertEquals('width=800,height=600', _stringify_attributes($atts, TRUE));
 	}
 
+	// ------------------------------------------------------------------------
+
+	public function test_html_escape()
+	{
+		$this->assertEquals(
+			html_escape('Here is a string containing "quoted" text.'),
+			'Here is a string containing &quot;quoted&quot; text.'
+		);
+	}
+
 }
\ No newline at end of file
diff --git a/tests/codeigniter/helpers/form_helper_test.php b/tests/codeigniter/helpers/form_helper_test.php
index 48628d2..0327858 100644
--- a/tests/codeigniter/helpers/form_helper_test.php
+++ b/tests/codeigniter/helpers/form_helper_test.php
@@ -7,6 +7,8 @@
 		$this->helper('form');
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_hidden()
 	{
 		$expected = <<<EOH
@@ -18,6 +20,8 @@
 		$this->assertEquals($expected, form_hidden('username', 'johndoe'));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_input()
 	{
 		$expected = <<<EOH
@@ -37,6 +41,8 @@
 		$this->assertEquals($expected, form_input($data));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_password()
 	{
 		$expected = <<<EOH
@@ -47,6 +53,8 @@
 		$this->assertEquals($expected, form_password('password'));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_upload()
 	{
 		$expected = <<<EOH
@@ -57,6 +65,8 @@
 		$this->assertEquals($expected, form_upload('attachment'));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_textarea()
 	{
 		$expected = <<<EOH
@@ -67,6 +77,8 @@
 		$this->assertEquals($expected, form_textarea('notes', 'Notes'));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_dropdown()
 	{
 		$expected = <<<EOH
@@ -130,6 +142,8 @@
 		$this->assertEquals($expected, form_dropdown('cars', $options, array('volvo', 'audi')));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_multiselect()
 	{
 		$expected = <<<EOH
@@ -152,6 +166,8 @@
 		$this->assertEquals($expected, form_multiselect('shirts[]', $options, array('med', 'large')));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_fieldset()
 	{
 		$expected = <<<EOH
@@ -163,6 +179,8 @@
 		$this->assertEquals($expected, form_fieldset('Address Information'));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_fieldset_close()
 	{
 		$expected = <<<EOH
@@ -172,6 +190,8 @@
 		$this->assertEquals($expected, form_fieldset_close('</div></div>'));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_checkbox()
 	{
 		$expected = <<<EOH
@@ -182,6 +202,8 @@
 		$this->assertEquals($expected, form_checkbox('newsletter', 'accept', TRUE));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_radio()
 	{
 		$expected = <<<EOH
@@ -192,6 +214,8 @@
 		$this->assertEquals($expected, form_radio('newsletter', 'accept', TRUE));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_submit()
 	{
 		$expected = <<<EOH
@@ -202,6 +226,8 @@
 		$this->assertEquals($expected, form_submit('mysubmit', 'Submit Post!'));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_label()
 	{
 		$expected = <<<EOH
@@ -211,6 +237,8 @@
 		$this->assertEquals($expected, form_label('What is your Name', 'username'));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_reset()
 	{
 		$expected = <<<EOH
@@ -221,6 +249,8 @@
 		$this->assertEquals($expected, form_reset('myreset', 'Reset'));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_button()
 	{
 		$expected = <<<EOH
@@ -231,6 +261,8 @@
 		$this->assertEquals($expected, form_button('name', 'content'));
 	}
 
+	// ------------------------------------------------------------------------
+
 	public function test_form_close()
 	{
 		$expected = <<<EOH
@@ -240,13 +272,6 @@
 		$this->assertEquals($expected, form_close('</div></div>'));
 	}
 
-	public function test_form_prep()
-	{
-		$expected = 'Here is a string containing &quot;quoted&quot; text.';
-
-		$this->assertEquals($expected, form_prep('Here is a string containing "quoted" text.'));
-	}
-
 }
 
 /* End of file form_helper_test.php */
\ No newline at end of file
diff --git a/user_guide_src/source/changelog.rst b/user_guide_src/source/changelog.rst
index 0d83242..54338f3 100644
--- a/user_guide_src/source/changelog.rst
+++ b/user_guide_src/source/changelog.rst
@@ -75,7 +75,9 @@
    -  Refactored ``plural()`` and ``singular()`` to avoid double pluralization and support more words.
    -  Added an optional third parameter to ``force_download()`` that enables/disables sending the actual file MIME type in the Content-Type header (disabled by default).
    -  Added a work-around in ``force_download()`` for a bug Android <= 2.1, where the filename extension needs to be in uppercase.
-   -  ``form_dropdown()`` will now also take an array for unity with other form helpers.
+   -  :doc:`Form Helper <helpers/form_helper>` changes include:
+	 - ``form_dropdown()`` will now also take an array for unity with other form helpers.
+	 - ``form_prep()`` is now **DEPRECATED** and only acts as an alias for :doc:`common function <general/common_functions>` ``html_escape()``.
    -  ``do_hash()`` now uses PHP's native ``hash()`` function (supporting more algorithms) and is deprecated.
    -  Removed previously deprecated helper function ``js_insert_smiley()`` from :doc:`Smiley Helper <helpers/smiley_helper>`.
    -  :doc:`File Helper <helpers/file_helper>` changes include:
@@ -387,6 +389,7 @@
 -  Fixed a bug (#1506) - :doc:`Form Helpers <helpers/form_helper>` set empty *name* attributes.
 -  Fixed a bug (#59) - :doc:`Query Builder <database/query_builder>` method ``count_all_results()`` ignored the DISTINCT clause.
 -  Fixed a bug (#1624) - :doc:`Form Validation Library <libraries/form_validation>` rule **matches** didn't property handle array field names.
+-  Fixed a bug (#1630) - :doc:`Form Helper <helpers/form_helper>` function ``set_value()`` didn't escape HTML entities.
 
 Version 2.1.3
 =============
diff --git a/user_guide_src/source/helpers/form_helper.rst b/user_guide_src/source/helpers/form_helper.rst
index fa7b3db..015bf11 100644
--- a/user_guide_src/source/helpers/form_helper.rst
+++ b/user_guide_src/source/helpers/form_helper.rst
@@ -463,29 +463,6 @@
 	echo form_close($string);
 	// Would produce:  </form> </div></div>
 
-form_prep()
-===========
-
-Allows you to safely use HTML and characters such as quotes within form
-elements without breaking out of the form. Consider this example
-
-::
-
-	$string = 'Here is a string containing "quoted" text.';
-	<input type="text" name="myform" value="$string" />
-
-Since the above string contains a set of quotes it will cause the form
-to break. The `form_prep()` function converts HTML so that it can be used
-safely
-
-::
-
-	<input type="text" name="myform" value="<?php echo form_prep($string); ?>" />
-
-.. note:: If you use any of the form helper functions listed in this page the form
-	values will be prepped automatically, so there is no need to call this
-	function. Use it only if you are creating your own form elements.
-
 set_value()
 ===========
 
@@ -546,4 +523,26 @@
 .. note:: If you are using the Form Validation class, you must always specify a rule for your field,
 	even if empty, in order for the set_*() functions to work. This is because if a Form Validation object
 	is defined, the control for set_*() is handed over to a method of the class instead of the generic helper
-	function.
\ No newline at end of file
+	function.
+
+Escaping field values
+=====================
+
+You may need to use HTML and characters such as quotes within form
+elements. In order to do that safely, you'll need to use
+:doc:`common function <../general/common_functions>` ``html_escape()``.
+
+Consider the following example::
+
+	$string = 'Here is a string containing "quoted" text.';
+	<input type="text" name="myform" value="$string" />
+
+Since the above string contains a set of quotes it will cause the form
+to break. The ``html_escape()`` function converts HTML so that it can be
+used safely::
+
+	<input type="text" name="myform" value="<?php echo html_escape($string); ?>" />
+
+.. note:: If you use any of the form helper functions listed in this page, the form
+	values will be prepped automatically, so there is no need to call this
+	function. Use it only if you are creating your own form elements.
\ No newline at end of file
diff --git a/user_guide_src/source/installation/upgrade_300.rst b/user_guide_src/source/installation/upgrade_300.rst
index 31a5c07..9521083 100644
--- a/user_guide_src/source/installation/upgrade_300.rst
+++ b/user_guide_src/source/installation/upgrade_300.rst
@@ -71,8 +71,24 @@
 The default return value of these functions, when the required elements
 don't exist, has been changed from FALSE to NULL.
 
+**********************************************************
+Step 8: Change usage of Email library with multiple emails
+**********************************************************
+
+The :doc:`Email library <../libraries/email>` will automatically clear the
+set parameters after successfully sending emails. To override this behaviour,
+pass FALSE as the first parameter in the ``send()`` method:
+
+::
+
+	if ($this->email->send(FALSE))
+ 	{
+ 		// Parameters won't be cleared
+ 	}
+
+
 ***************************************************************
-Step 8: Remove usage of (previously) deprecated functionalities
+Step 9: Remove usage of (previously) deprecated functionalities
 ***************************************************************
 
 In addition to the ``$autoload['core']`` configuration setting, there's a number of other functionalities
@@ -118,6 +134,16 @@
 .. note:: This function is still available, but you're strongly encouraged to remove it's usage sooner
 	rather than later.
 
+Form helper form_prep()
+=======================
+
+:doc:`Form Helper <../helpers/form_helper>` function ``form_prep()`` is now just an alias for
+:doc:`common function <../general/common_functions>` ``html_escape()`` and it's second argument
+is ignored. It is deprecated and scheduled for removal in CodeIgniter 3.1+.
+
+.. note:: This function is still available, but you're strongly encouraged to remove it's usage sooner
+	rather than later.
+
 Date helper standard_date()
 ===========================
 
@@ -154,17 +180,4 @@
 CodeIgniter 3.1+.
 
 .. note:: This setting is still available, but you're strongly encouraged to remove its' usage sooner
-	rather than later.
-
-Email library
-=============
-
-The :doc:`Email library <../libraries/email>` will automatically clear the set parameters after successfully sending
-emails. To override this behaviour, pass FALSE as the first parameter in the ``send()`` function:
-
-::
-
-	if ($this->email->send(FALSE))
- 	{
- 		// Parameters won't be cleared
- 	}
+	rather than later.
\ No newline at end of file