Whenever you use more than one library (prototype and scriptaculous, your case) you should expect troubles. Javascript Libraries bring troubles by default, if you don't know javascript language. But using more than a single library will bring troubles for sure, as they might use, each of them, the same named functions or custom methods for different purposes.
Learn javascript and create your own codes. Don't try to find an easy short cut by using frameworks/libraries without learning their basic language, which is javascript.
sri, with ghosting off, dragging an item creates an open space among the tiles. The other tiles are able to move around by moving into the open space. With ghosting on, however, the dragged item's space is no longer empty, and the other tiles have no room to move.
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