Seems that the Transients API timeout took care of the versioning problem. It’s now loading jQuery v1.7.2 and drag-and-drop works again. That’s always the first thing to break if you load a more recent jQuery version. It’s be great if the devs could make the admin code a bit more tolerant of newer versions.
Still is calling through the https protocol, though. Does it switch to https if there is anything on the page that is loaded using that protocol? With Twitter Anywhere loading its own duplicate, dumb versions (v1.4.4) in both http and https “because we want to know what we’re working with” (how about the current one?) so we’re all stuffed with THREE jQuery libraries, could that be what is triggering UGL to call https?