Any progress on this? I'm having this problem too. The problem is that liveHandler is the same for every subtype of the element. And only the first part of the name is kept. So if you have:
$("div").live("a.b", funciton(){})
and then
$("div).live("a.c", function())
It will break. I'm looking into a solution. If you have one already, it would save me some time. Thanks!
Thanks a ton for your code and test cases! I ended up deciding to go many steps further and completely overhaul the event handling system. As it stood the system was rather tenuous (attaching properties to event handlers was causing all sorts of problems). I borrowed your test cases (thanks!) and rewrote everything (add/remove/handle, special events, and live) and everything is working smoothly now.
(Oh, one quick point - you should make sure that you keep your source repository up to date when building patches - the patch you made was on a copy of jQuery that was two months out of date.)