I'm having the same problem today. Looks like another person did to and thier fix was to put a hack into the autocomplete plugin code.
- [jQuery] Re: jQuery Autocomplete - After service call if re... tarave
- [jQuery] Re: jQuery Autocomplete - After service call ... Dushyant Patel
- [jQuery] Re: jQuery Autocomplete - After service call ... Dushyant Patel