I've been struggling hard this morning to get Jeditable to work in IE (6 and 7). Whilst everything was working perfectly fine in Firefox, in IE the clickable editable text would just disappear and never return. The solution was to use the latest jQuery 1.2.1. I was using version 1.1.4 which was why it didn't work.
Jeditable is a brilliant plugin with really good configuration options (hint read the source code's documentation comment) and I'll now send an email to Mika about this pitfall and suggest that he includes it in his documentation.
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