jQuery 1.2.6 to jQuery 1.3.2

Hi,
wordpress 2.7.1. uses jquery 1.2.6 and UI 1.6. I updated to jquery
1.3.2 and jquery 1.6. But drag and drop doesnt word exactly. Is there
any guide to update jquery 1.2.6 to jQuery 1.3.2 and UI.
Have a nice day.