This is an old post from 2009. As such, it might not be relevant anymore.
I reported a week or two ago that live() was rumoured not to support mouseenter/mouseleave, however in the jQuery release notes it states that it is. Once 1.4 goes live I’m plugging it straight into an old project and updating some of the more archaic even handlers Congratulations to the entire jQuery team on yet another fantastic set of improvements!