ui.tabs recursive loading behavior in IE when tab content loaded via jQuery

When using ui.tabs with with jQuery 1.3.2 and ui 1.6rc6. If I load the top level tab div content using jQuery.html() and then init the tabs with $.('#tabs').tabs(), the tab loading fails in IE 6 and 7. It appears to be trying to load the tab content via ajax.

Example code:

In jQuery(document).ready...

var tabHtml = '<ul><li><a href="#foo">Foo</a></li><li><a href="#bar">Bar</a></li></ul><div id="foo">Foo Content</div><div id="bar">Bar Content</div>';

jQuery('#tabs').html(tabHtml);

jQuery('#tabs').tabs();

In the html body

<div id="tabs"></div>