Basically I'd like to populate $foo$ with the current fiscal year, while still allowing the user to select multiple fiscal years.
So far my errors suggest either that the token isn't being created properly OR that I can't use a token within the tag.
I've tried using 'set token=' in each possible spot in the XML hierarchy and have come to the conclusion that it simply does not work, I have not witnessed a new token get created.
Also, tokens do not work in the 'default' field. As far as I can tell the reason is that the 'default' value becomes part of the URL for the form, and tokens are not parsed yet.
So, what I do to populate a default value is build it into the URL for the form. In your case it would be something like: http://your_search_head_host:8000/en-US/app/your_app_name/your_form_name?form.FY=2014