mousedown event on element
.autocomplete-suggestion
propagates back to input field which triggers focus.
live('autocomplete-suggestion', 'mousedown', function(e){
if (hasClass(this, 'autocomplete-suggestion')) { // else outside click
var v = this.getAttribute('data-val');
that.value = v;
o.onSelect(e, v, this);
that.sc.style.display = 'none';
}
}, that.sc);
On focus the below event is triggered, because of which .autocomplete-suggestion is again visible.
if (!o.minChars) addEvent(that, 'focus', that.focusHandler);
To avoid this I have added e.preventDefault(); in live('autocomplete-suggestion', 'mousedown', function(e){...} function.
Please see if you can recreate and provide a better solution for this.