I have/had a similar problem as first stated... took me a looong time
to somewhat figure it out.
I was using jquery-1.2.3.pack.js, but when I switched to match the
jquery call in the example file (
http://ajax.googleapis.com/ajax/libs/
jquery/1.2.6/jquery.min.js) everything worked fine... so after
downloading the newest jquery (1.2.6) library and using that all is
good. not sure what the difference is, but worked for me.
mp