Table Drag problem with Jquery Update to jquery 1.4 and highers
The problem is that newer jQuery .after function returns the content to be added if you invoke it on an empty list. This breaks the tabledrag.js makeDraggable function.

The following patch that function fixed it for me:

   // Insert the handle after indentations (if any).
-  if ($('td:first .indentation:last', item).after(handle).size()) {
+  var td = $('td:first .indentation:last', item);
+  if (td.size() &gt; 0) {
+    td.after(handle);
     // Update the total width of indentation in this entire table.