There's a bug in the rinlinejQuery regexp that makes it a bit too "greedy":

jQuery('<p> jQuery12="0" </p>').html();  // returns: "  "

Proposed fix:

In manipulation.js, line 1 should be changed to something like:

var rinlinejQuery = /(<\\w[^<]+) jQuery\\d+="(?:\\d+|null)"/g,
                     ^^^^^^^^^^

and the replacements in lines 156 and 176 to reinsert the first matching parenthesis:

.replace(rinlinejQuery, "$1")
                        ^^^^

Actually this whole rinlinejQuery business is a bit of an ugly hack. Would it perhaps be feasible to fix the expando value in a way similar to what Andrea Giammarchi suggests in this jquery-dev post?