The item you click on to drag disappears, with the items below it jumping up to fill its spot.
I'm not sure what I'm missing here that my result is different than yours. After muddling around with this "debugger" in IE9 it keeps throwing a Invalid Calling Object error on the second listed URL but not on the first one.
What is the difference? I ask because I am getting the same results that are seen on the 2nd URL, and have spent HOURS trying to find the difference between these two pages... Very very confused. :(