Index: test/unit/event.js
===================================================================
--- test/unit/event.js	(revision 6162)
+++ test/unit/event.js	(working copy)
@@ -474,7 +474,7 @@
 });
 
 test(".live()/.die()", function() {
-	expect(42);
+	expect(46);
 
 	var submit = 0, div = 0, livea = 0, liveb = 0;
 
@@ -611,6 +611,29 @@
 	
 	// Cleanup
 	jQuery("#nothiddendivchild").die("click");
+
+	// Verify that .live() ocurs and cancel buble in the same order as
+	// we would expect .bind() and .click() without delegation
+	var lived = 0, livee = 0;
+	
+	// bind one pair in one order
+	jQuery('span#liveSpan1 a').live('click', function(){ lived++; return false; });
+	jQuery('span#liveSpan1').live('click', function(){	livee++; });
+
+	jQuery('span#liveSpan1 a').click();
+	equals( lived, 1, "Verify that only one first handler occurred." );
+	equals( livee, 0, "Verify that second handler don't." );
+
+	// and one pair in inverse
+	jQuery('#liveHandlerOrder span#liveSpan2').live('click', function(){	livee++; });
+	jQuery('#liveHandlerOrder span#liveSpan2 a').live('click', function(){ lived++; return false; });
+
+	jQuery('span#liveSpan2 a').click();
+	equals( lived, 2, "Verify that only one first handler occurred." );
+	equals( livee, 0, "Verify that second handler don't." );
+	
+	// Cleanup
+	jQuery("span#liveSpan1 a, span#liveSpan1, span#liveSpan2 a, span#liveSpan2").die("click");
 });
 
 /*
Index: test/index.html
===================================================================
--- test/index.html	(revision 6162)
+++ test/index.html	(working copy)
@@ -213,6 +213,11 @@
 			<span>...</span><a id="linkWithNoHrefWithTabIndex" tabindex="1">Eat some funyuns</a><span>...</span>
 			<span>...</span><a id="linkWithNoHrefWithNegativeTabIndex" tabindex="-1">Eat some funyuns</a><span>...</span>
 		</div>
+		
+		<div id="liveHandlerOrder">
+			<span id="liveSpan1"><a href="#"></a></span>
+			<span id="liveSpan2"><a href="#"></a></span>
+		</div>
 	</div>
 	</dl>
 	
Index: src/core.js
===================================================================
--- src/core.js	(revision 6162)
+++ src/core.js	(working copy)
@@ -342,14 +342,17 @@
 	},
 
 	closest: function( selector ) {
-		var pos = jQuery.expr.match.POS.test( selector ) ? jQuery(selector) : null;
+		var closer = 0, pos = jQuery.expr.match.POS.test( selector ) ? jQuery(selector) : null;
 
 		return this.map(function(){
 			var cur = this;
 			while ( cur && cur.ownerDocument ) {
-				if ( pos ? pos.index(cur) > -1 : jQuery(cur).is(selector) )
+				if ( pos ? pos.index(cur) > -1 : jQuery(cur).is(selector) ) {
+					jQuery(cur).data('howClose',closer);
 					return cur;
+				}
 				cur = cur.parentNode;
+				closer++;
 			}
 		});
 	},
Index: src/event.js
===================================================================
--- src/event.js	(revision 6162)
+++ src/event.js	(working copy)
@@ -571,9 +571,14 @@
 		}
 	});
 
+	elems.sort(function(a,b) {
+		return jQuery(a.elem).data('howClose') - jQuery(b.elem).data('howClose');
+	});
+	
 	jQuery.each(elems, function(){
-		if ( this.fn.call(this.elem, event, this.fn.data) === false )
-			stop = false;
+		if ( this.fn.call(this.elem, event, this.fn.data) === false ) {
+			return stop = false;;
+		}
 	});
 
 	return stop;