I am currently using this code: http://jquery-ui.googlecode.com/svn/branches/labs/selectmenu/index.html
www.petsunlimited.com/test2.htm
www.playerspace.com/test1.htm
As you can see, the drop down on test 1 IS working correctly with optgroups and the drop down on test1 is displaying the optgroup with each option.
Anyone know why this is?