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Hover over the scrollbar of the list (UL element - first box). I do NOT expect the hover out event to fire, however it does in FF 3.5.7 (at least) with jQuery 1.4.1.
With jQuery 1.3.2 this works as expected (hover out event does not fire until you have moved past the scrollbar and the border of the list). Also, it works as expected with a DIV instead of UL (second box).
This is especially problematic using the code when the hover-out code hides the div, such as if you want a drop-down menu (with enough items to required scrolling) to disappear when you move the mouse off of it.