Draggable and Resizable after AJAX update in IE

Having the following code

<div id="outer" style="border:2px solid blck; display:block;height:50px;width:50px;">

<div id="middle" style="border:2px solid red; display:block;height:100%;width:100%;">

<div id="inner" style="border:2px solid green; display:block;height:100%;width:100%;">

</div>

</div>

</div>

<script type="text/javascript" >

jQuery('#outer').droppable();

jQuery('#middle').resizable();

jQuery('#inner').draggable();

</script>

This works pretty well unless the #outer element is DOM replaced by an AJAX response (the response replaces the old #outer with a new one).

Then ALL draggable elements, not only the replaced, stop working. this only affects IE (6, 7, 8).

IE reports an error message inside the jquery 1.3.2 library (line 2917 in the uncompressed js file).