preventDefault() does not work in live('submit, ...) when triggered from $('form').submit()

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When triggering a form submission from the submit() method, the event cannot be cancelled as normal, with either return false; or event.preventDefault();

I have attached a test html file.

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Example HTML of bug.

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Interestingly enough, this example works if you place id="submit" on the input, but fails without it.

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Works as expected in jQuery 1.4.2.