Setting cursor parameter does not work using draggables. Tested with OSX FF2 and Safari.

 $("#something").draggable({
      cursor : "move"
 });

Workaround is to use something like following:

 $("#something").draggable({
     cursor : "move",
     start  : function(event, ui) {
         $(this).css('cursor','move');
     },
     stop  : function(event, ui) {
         $(this).css('cursor','default');
     }      
 });