I missed few ""s there thank you. I am pasting the updated code here.
I just installed firebug. I dont receive any errors, what happens is
page is refreshed. Before moving to an easier method, I want to learn
this method first. I am just a beginner yet. Do you think page is
refreshed because I have method="post" in my form?

Updated code:
    $(document).ready(function() {
        $("[name='signup']").click(function() {
                $.ajax({
                    type: "POST",
                                        data: { PROCESS: "Add2Member", 
FIRSTNAME: "[name='FIRSTNAME']",
LASTNAME: "[name='LASTNAME']", EMAILADDRESS: "[name='EMAILADDRESS']",
PASSWORD: "[name='PASSWORD']", CITY: "[name='CITY']" },
                                        url: "default.cs.asp",
                success: function(output) {
                $("#SIGNUPFORM").html(output);
                                $('#SIGNUPFORM').html("<h2>Contact Form 
Submitted!</h2>")
                }
                });
        });

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