jquery ui sortable('refresh') not working!

To give you the opportunity to close this question, and just for reference sake in case anyone else stumbles across this, this seems to work fine in the latest jquery-ui. Here is a jsfiddle: http://jsfiddle.net/fordlover49/mVrGA/

I had a similar problem. Once I added a new element to the sortable list nothing was draggable anymore. My solution was to call the destroy method:

$( ".selector" ).sortable( "destroy" ); 

first and then make it sortable again.