I like it.
The only thing I would perhaps change is adding a handle to it, so the user change only start dragging when they mouse over the handle.
As an example I’ve quickly written on js fiddle:http://jsfiddle.net/4x6S7/ The small gray box in the left hand corner is the handle.
Thx very much I think that the handle is good idea, becuase few times I wanted to change width of an item and insted of it I were draging an element and it was annoying
Oh I see.
If you check out the jquery api -> http://api.jqueryui.com/sortable/#option-distance
You can also specify the minimum amount of pixels it needs to move for dragging.Sorry this is more code related than user interface. Hope that helps.
Thx man it definately improved my UI