I found OG Audience inline does not work with latest jQuery. For me, i am using jQuery 1.2.3.

To solve this problem, just simply

find

 $("div[@id=node-" + nid + "]/div.content").append('<div id="node-ogaudience" style="display: block;">' + html_form + '</div>');

and replace by

 $("div[@id=node-" + nid + "]").append('<div id="node-ogaudience" style="display: block;">' + html_form + '</div>');