IE8 v8.0.6001.18702 XP Professional SP3 32bit + jQuery UI DatePicker does nothing (even on your demo pages)
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All demos of DatePicker fail using the above setup (nothing shown on input selection.
I ahve also implemented a version on a site I am building and it also fails (select shows the datepicker but cannot move months or select a date)
As it also fails on your site I think it is platform based issue