I just ran into this so I figured I would let others know. I was working with jQuery Mobile in Dreamweaver CS5 using live view and the links were not working. I could not get animations or even simple anchors to work. After searching and some trial and error I ran into this setting.
Make sure that you either enable "Follow links continuously" or "Follow Link" is selected. Otherwise clicking on links/buttons has no effect.
Till next time...