I can reproduce this bug in IE7 (and a colleague in IE6), my link is here:
If you select a tag the list gets filtered and the tag added to the selected div. Unselecting it will reset the taglist, and remove() the tag from the selected div. Selecting another one will result in positioning the new tag next to the element that has been removed.
Is this a jQuery issue, or can this be fixed by changing my css.
After a suggestion on StackOverflow I've also tried to use .hide() and .hide("fast") but to no avail.
Originally posted here: http://stackoverflow.com/questions/1668042/jquery-remove-doesnt-hide-used-space-in-ie6-and-ie7