I did not make any changes on the code. I dont receive any errors but its not working. I must be missing something very very simple here. Any suggestion appreciated...
all I see in your HTML is:
<script type="text/javascript" src="http://ajax.googleapis.com/ajax/libs/jquery/1.4.2/jquery.min.js"></script>
you need to include jeditable javascript files too. jeditable is not included in jQuery. download both jeditable and jquery on your local server. best not use remote resources.
[edit]
The div you want to make editable is not available yet since it's coming from AJAX.
Add the jeditable code in success: function(data) {