I've posted an example here: http://jsfiddle.net/ericclemmons/LEHLX/2/
Really, what it comes down to is the classic "assigning users to groups" issue. I have a list of users and a list of groups, but I'd like to be able to have nesting of the groups: user "Eric" would be in "Users", "Web", and "Administrators".
The problem is that I cannot drag a user to an empty <ul>
in the list.