I noticed the same and reported here:
http://groups.google.com/group/jquery-ui/browse_thread/thread/edcbfc05b89b695e/2cd41477147c725b?lnk=gst&q=snobo#2cd41477147c725b

No reply so far. Perhaps we shall ticket it.

On Apr 3, 10:54 pm, Paul Thiel <[email protected]> wrote:
> I am using jQuery UI 1.7.
>
> The title bar in thedialogis not being sized correctly in IE when
> thedialogis initialized withwidth: 'auto'.  It is compressed down
> to the length of the title text and then overlaid by the close button.
>
> As soon as you give thedialogan explicitwidth, the problem goes
> away and the title bar is sized correctly.
>
> Anyone else seen this?
>
> Is the problem ticketed and / or resolved?
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