Using the "Firebug lite" tab (you can get it here: http://getfirebug.com/firebuglite ), I could narrow down the place where the error actually throws.
It seems that the root of the problem is not in the code you extracted, but in jQuery itself.
I noticed that you are using jQuery version 1.2.6. The problem is the clone method of this version. This results in an error in this line of your published code:
$clone=$cloneMe.clone(true);
I could give you more detailed information exactly where the error occurs, but I do not think this will solve your problem. In any case, it would be nice to create a workaround for damaged jQuery code. I would rather try a newer version of jQuery (after a quick look I saw that the clone method is implemented differently) and see if your problem solves.
EDIT: Sorry, this is not this line
$clone=$cloneMe.clone(true);
but this line:
$cache.append($(this).children().clone(true));
(line 42 in autocolumn.js)
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