page text autosearch filter stopped working

Issue Summary

page text autosearch stopped workingn no filtered results after entering any word
some javascript conflict / jquery maybe? (jquery update, v. 1.2.6)

more info in addition to this...
-- front page always shows all possible translation strings after the end of the page!
-- some empty entry (bad?), in that particular page prevent next entries from showing their source / translation)
_{(Im sure I have seen this somewhere else...5.x maybe)}

firefox in complex pages (e.g installing a new module) report
A script on this page may be busy, or it may have stopped responding. You can stop the script now, open the script in the debugger, or let the script continue.

Script: *ttp://.../.../misc/jquery.js?B:745
after continuing page loads ok. (similar error in ie)
This is happening only when localization client module is active

any ideas?