Drag and drop sortable solution for nested lists?

[CayceBalara]

Does anyone in town have a good solution for doing drag-and-drop
sorting with nested ul lists, preferably jquery? By that I mean, with
some nested ul list like such http://gist.github.com/606493 I wanted
to be able to drag-and-drop any element in the list to somewhere else
in the list, with its children, and have access to serialized data
that indicates the new ordering.

I've tried basic jquery sortable with options, and it sort of works
but it is not clean - very jumpy and some places in the lists it's
just impossible to make a drop in the right spot. I've also pulled
down some supposed solutions from the interwebs and not having much
luck with them either. On the verge of writing my own, not a bad thing
in and of itslef but time consuming - would love to dodge that bullet
if someone has a solution.

Thanks.