Something in your djDebugToolbar.js is making $ unrecognized in jQuery Live events. I've narrowed the problem down to that file, but I'm afraid I don't know much more than that.

To see the error use jQuery 1.3.2 and create something like this http://dpaste.com/42838/ and you will get an $ is not a function error as soon as it hits $(this) or anything that uses $.