+2  A: 

What about using the draggable and droppable plugins in jQuery UI?

The Draggable plugin makes selected elements draggable by mouse.

the Droppable plugin provides a drop target for draggables.

Robert Harvey
A: 

Yup! Draggable and Droppable should do the trick... You can use the drop() method of droppable to update the list state for both.

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