I've read that this has been fixed in the latest release, but using jQuery 1.4.1 and UI 1.8b2 still result in show/hide effects breaking dialog widgets.

var myDiv = document.createElement("div");

$(myDiv).dialog();  // this works

$(myDiv).dialog({show: "drop"}); // this doesn't

I really want to switch to 1.4, but this is a deal breaker.