diff --git a/src/core.js b/src/core.js
index 3a9eaa7d..ac8ec6bc 100644
--- a/src/core.js
+++ b/src/core.js
@@ -346,14 +346,18 @@ jQuery.fn = jQuery.prototype = {
 	},
 
 	closest: function( selector ) {
-		var pos = jQuery.expr.match.POS.test( selector ) ? jQuery(selector) : null;
+		var pos = jQuery.expr.match.POS.test( selector ) ? jQuery(selector) : null,
+			closer = 0;
 
 		return this.map(function(){
 			var cur = this;
 			while ( cur && cur.ownerDocument ) {
-				if ( pos ? pos.index(cur) > -1 : jQuery(cur).is(selector) )
+				if ( pos ? pos.index(cur) > -1 : jQuery(cur).is(selector) ) {
+					jQuery.data(cur, "closest", closer);
 					return cur;
+				}
 				cur = cur.parentNode;
+				closer++;
 			}
 		});
 	},
diff --git a/src/event.js b/src/event.js
index a621eb93..e707015c 100644
--- a/src/event.js
+++ b/src/event.js
@@ -571,9 +571,13 @@ function liveHandler( event ){
 		}
 	});
 
+	elems.sort(function(a,b) {
+		return jQuery.data(a.elem, "closest") - jQuery.data(b.elem, "closest");
+	});
+	
 	jQuery.each(elems, function(){
 		if ( this.fn.call(this.elem, event, this.fn.data) === false )
-			stop = false;
+			return (stop = false);
 	});
 
 	return stop;
diff --git a/test/index.html b/test/index.html
index 89244d7d..2c3545f0 100644
--- a/test/index.html
+++ b/test/index.html
@@ -213,6 +213,11 @@ Z</textarea>
 			<span>...</span><a id="linkWithNoHrefWithTabIndex" tabindex="1">Eat some funyuns</a><span>...</span>
 			<span>...</span><a id="linkWithNoHrefWithNegativeTabIndex" tabindex="-1">Eat some funyuns</a><span>...</span>
 		</div>
+		
+		<div id="liveHandlerOrder">
+			<span id="liveSpan1"><a href="#" id="liveLink1"></a></span>
+			<span id="liveSpan2"><a href="#" id="liveLink2"></a></span>
+		</div>
 	</div>
 	</dl>
 	
diff --git a/test/unit/event.js b/test/unit/event.js
index 4d2b0aaf..1da9b590 100644
--- a/test/unit/event.js
+++ b/test/unit/event.js
@@ -474,7 +474,7 @@ test("toggle(Function, Function, ...)", function() {
 });
 
 test(".live()/.die()", function() {
-	expect(42);
+	expect(46);
 
 	var submit = 0, div = 0, livea = 0, liveb = 0;
 
@@ -611,6 +611,29 @@ test(".live()/.die()", function() {
 	
 	// Cleanup
 	jQuery("#nothiddendivchild").die("click");
+
+	// Verify that .live() ocurs and cancel buble in the same order as
+	// we would expect .bind() and .click() without delegation
+	var lived = 0, livee = 0;
+	
+	// bind one pair in one order
+	jQuery('span#liveSpan1 a').live('click', function(){ lived++; return false; });
+	jQuery('span#liveSpan1').live('click', function(){	livee++; });
+
+	jQuery('span#liveSpan1 a').click();
+	equals( lived, 1, "Verify that only one first handler occurred." );
+	equals( livee, 0, "Verify that second handler don't." );
+
+	// and one pair in inverse
+	jQuery('#liveHandlerOrder span#liveSpan2').live('click', function(){	livee++; });
+	jQuery('#liveHandlerOrder span#liveSpan2 a').live('click', function(){ lived++; return false; });
+
+	jQuery('span#liveSpan2 a').click();
+	equals( lived, 2, "Verify that only one first handler occurred." );
+	equals( livee, 0, "Verify that second handler don't." );
+	
+	// Cleanup
+	jQuery("span#liveSpan1 a, span#liveSpan1, span#liveSpan2 a, span#liveSpan2").die("click");
 });
 
 /*
diff --git a/test/unit/selector.js b/test/unit/selector.js
index 924f41d0..f7c39121 100644
--- a/test/unit/selector.js
+++ b/test/unit/selector.js
@@ -189,7 +189,7 @@ test("child and adjacent", function() {
 	reset();
 	
 	t( "Last Child", "p:last-child", ["sap"] );
-	t( "Last Child", "a:last-child", ["simon1","anchor1","mark","yahoo","anchor2","simon"] );
+	t( "Last Child", "a:last-child", ["simon1","anchor1","mark","yahoo","anchor2","simon","liveLink1","liveLink2"] );
 	
 	t( "Nth-child", "#main form#form > *:nth-child(2)", ["text1"] );
 	t( "Nth-child", "#main form#form > :nth-child(2)", ["text1"] );
@@ -278,7 +278,7 @@ test("pseudo (:) selectors", function() {
 	expect(53);
 	t( "First Child", "p:first-child", ["firstp","sndp"] );
 	t( "Last Child", "p:last-child", ["sap"] );
-	t( "Only Child", "a:only-child", ["simon1","anchor1","yahoo","anchor2"] );
+	t( "Only Child", "a:only-child", ["simon1","anchor1","yahoo","anchor2","liveLink1","liveLink2"] );
 	t( "Empty", "ul:empty", ["firstUL"] );
 	t( "Enabled UI Element", "#form input:not([type=hidden]):enabled", ["text1","radio1","radio2","check1","check2","hidden2","name"] );
 	t( "Disabled UI Element", "#form input:disabled", ["text2"] );
@@ -290,7 +290,7 @@ test("pseudo (:) selectors", function() {
 	t( "Text Contains", "a:contains('Google Groups (Link)')", ["groups"] );
 	t( "Text Contains", "a:contains('(Link)')", ["groups"] );
 
-	t( "Element Preceded By", "p ~ div", ["foo","fx-queue","fx-tests", "moretests","tabindex-tests"] );
+	t( "Element Preceded By", "p ~ div", ["foo","fx-queue","fx-tests", "moretests","tabindex-tests", "liveHandlerOrder"] );
 	t( "Not", "a.blog:not(.link)", ["mark"] );
 	t( "Not - multiple", "#form option:not(:contains('Nothing'),#option1b,:selected)", ["option1c", "option1d", "option2b", "option2c", "option3d", "option3e"] );
 	//t( "Not - complex", "#form option:not([id^='opt']:nth-child(-n+3))", [ "option1a", "option1d", "option2d", "option3d", "option3e"] );