Peter:
Ok. I have tried your demo and it seemed to be working if I used your Version 1.1. It did not work with Version 1.0. However, your version 1.1 is using jQuery 1.6.2.min.js. I understand it is the latest version of JQuery. But this version would not work with UI.Layout. If I use jQuery-1.2.6.js, it would work with UI.Layout (issue with closing/opening panel), but not JQWidgets.
I will try to make it work on both way, but I doubt it. Anyway, when I added jQXmenu into my HTML, i noticed it took so much space below the menu. I have other DIV below Menu bar. It is way below. I did even set the element of jQXMenu to 100% height.
Patrick