jQuery ui 1.9 is going to take care of this for you. Heres a demo of the pre:
https://dl.dropbox.com/u/3872624/lab/touch/index.html
Just grab the jquery.mouse.ui.js out, stick it under the jQuery ui file you're loading, and that's all you should have to do! Works for sortable as well.
This code is working great for me, but if your getting errors, an updated version of jquery.mouse.ui.js can be found here:
Jquery-ui sortable doesn't work on touch devices based on Android or IOS