See this :
jsFiddle : http://jsfiddle.net/Khursheed_Ali/uZ8kN/8/
Replaced :
ui.draggable.position({ of: $(this), my: 'left top', at: 'left top'});
With :
$(this).append(ui.draggable);
$(ui.draggable).css("position","relative");
$(ui.draggable).css("top","0px");
$(ui.draggable).css("left","0px");