.live() delegation fails in second handler if first handler modify the DOM

.live() delegation fails in second handler if first handler modify the DOM

I'm using 1.3b2 (6070) and found the following behavior.
- using 2 .live() handlers for same link.
- 1st handler always fire and modify the link with .html(string)
- 2nd handler fire once, them stops firing.
I've made a test case:
<a href="http://irae.pro.br/jquerytests/live.html.html">http://irae.pro.br/jquerytests/live.html.html</a>
The weird thing is that after the manipulation, if you stop modifying the DOM (use toggle link in test case), both handlers fire again.
I dug into jQuery source but was unable to solve the problem myself to present a patch. But I found out that if I use .wrapInner() instead of .html() everything works fine. To me it seems that .closest() used in liveHandler can't match the element for delegation during domManip for some reason, but this was as far as I could get.