I ran into this issue as well today. The version 1.2 of Interface now uses the getPosition() instead of the getPositionLite() for calculating the position. The following code changes to the iutils.js fixes issues if you're dragging from an element with a position of "fixed".
Thanks to bander for the original fix. Can we get these fixes added to Interface? -Dan getPosition : function(e) { var x = 0; var y = 0; var restoreStyle = false; var es = e.style; if (jQuery(e).css('display') == 'none') { oldVisibility = es.visibility; oldPosition = es.position; es.visibility = 'hidden'; es.display = 'block'; es.position = 'absolute'; restoreStyle = true; } var el = e, fixed = false; while (el){ if (jQuery(el).css('position') == 'fixed') { fixed = true; } x += el.offsetLeft + (el.currentStyle && !jQuery.browser.opera ? parseInt(el.currentStyle.borderLeftWidth)||0:0); y += el.offsetTop + (el.currentStyle && !jQuery.browser.opera ? parseInt(el.currentStyle.borderTopWidth)||0:0); el = el.offsetParent; } if (fixed) { if (window.pageXOffset != null) { x += window.pageXOffset; y += window.pageYOffset; } else { x += document.body.scrollLeft; y += document.body.scrollTop; } } el = e; while (el && el.tagName && el.tagName.toLowerCase() != 'body') { x -= el.scrollLeft||0; y -= el.scrollTop||0; el = el.parentNode; } if (restoreStyle) { es.display = 'none'; es.position = oldPosition; es.visibility = oldVisibility; } return {x:x, y:y}; }, getPositionLite : function(el) { var x = 0, y = 0; var fixed; while(el) { if (jQuery(el).css('position') == 'fixed') { fixed = true; } x += el.offsetLeft || 0; y += el.offsetTop || 0; el = el.offsetParent; } if (fixed) { if (window.pageXOffset != null) { x += window.pageXOffset; y += window.pageYOffset; } else { x += document.body.scrollLeft; y += document.body.scrollTop; } } return {x:x, y:y}; },