Latest Sortable Demo -- Element losing place in IE7

This one is a little difficult to describe, and I haven't had a whole lot of luck reproducing it yet. What happens is that the user begins to drag an item, and a gap exists indicating that the element will drop in that spot (that's correct so far). Then, that element can be dropped in a different spot, but the function that gets rid of the placeholder "gap" doesn't fire, so the element is moved to one spot, and the gap still exists and will stay until an arbitrary element is placed back into it.

Something else happened at the same time; I'm not sure if it's a separate bug that occurred coincidentally, or whether it is related.

The element that I moved in order to create the gap (as described above), was able to sit on to of another element, as in a stack. When I moved it, the original element seemed to stay put. I was able to move the incorrectly stacked item to a new space in the correct way.

The screen shot is attached. It shows a gap, and it shows the "and change" element stacked on the "our" element.