I noticed as of version 1.3 slideToggle animation effect had been modified "the vertical padding and vertical margin are also animated, creating a smoother effect" so I decided to test this out.
It works great in Firefox but in IE 7 its even less smooth than the previous version. The vertical padding and margin actually jumps rather than slides creating a noticable jumping effect (you can see this on the jquery docs example page - http://docs.jquery.com/Effects/slideToggle).