Sorry to keep replying to my post, but I just tested it in another browser and 
discovered that the behavior is different. In Safari, contentEditable only 
makes text editable whereas in Firefox I can also drag the divs (without any 
javascript). I appear to have found what I need using Firefox.

I updated the example to reflect the current state of research:

http://anavidesign.com/temp/draggable_editable_text.html

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