This error can be viewed in the fiddle http://jsfiddle.net/sCxpu/2/
If you select a single item you can drag it throughout the grid.
If you select 2 items you can drag them anywhere, but if you drag them over the first item it will alternate between showing the placeholder box in its original position, or in one of first or second position.
If you select 3 or more items it just shows the placeholder in its original position for the left side of the first item, or in position 2 for the right side.
Even if we can't fix it, I'd love to find a workaround.