Is there a jQuery plugin that suggests/autocompletes within a textarea?
What I want is to have suggested words or autocompleted text proffered to the user in a textarea like the example image below:

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Well there is the autocomplete plugin that does just that, and if you want to pull data from a database I recomment using the ajax API that is included in jQuery.
something like this
Also remember this is just the basic structure to give you an idea.
P.S. I just found this it should fill all your needs.