Offset problems with Sortable

Offset problems with Sortable

I implemented the example that is on the site for the sortable methods.  The only problem is that the boxes are about 300 pixels below and 50 pixels right of where I click.
 
The page I am implementing is a Xajax driven custom page that has a lot of complicated nesting, etc.
 
I think it is an issue that jQuery cannot correctly determine where my mouse is.   I am sure there is a way to address this automatically or manually.  The problem is I don't know where to start.
 
Any ideas?
 
Thanks,
Bryan