I know its possible to integrate jQuery within Firefox addons, but are we able to manipulate (animate, move, adjust transparency, etc) XUL elements themselves?
From
The answer right now is "mostly".
Basic stuff works, including selecting, deleting and finding. I use 1.5.2 pretty heavily both inside an extension and on content pages from the extension.
$.ready() also doesn't work because jQuery assumes and waits for a body. This is the commit that broke it.
Some stuff doesn't work because, as @Daniel describes, jQuery's doesn't properly detect what it can and can't do in XUL (more background below). From stepping through jQuery code I have have found you need at least the following lines in your own code.
// Workarounds for jQuery not properly testing support in XUL environment
// These are done at jQuery init
// This is actually critical, otherwise elements are not properly removed from the cache and you get a cache[id] is undefined
crowdmash.$.support.deleteExpando = true;
// These are done at ready(), but jQuery never fires ready in XUL
// XUL doesn't seem to support offsetWidth and offsetHeight (without this :hidden is broken which breaks fadeIn)
crowdmash.$.support.reliableHiddenOffsets = false;
crowdmash.$.support.opacity = true;
If you want to use jQuery on a content page from an extension, see my tips.
jquery-xul modifies 1.4.4 to better work with XUL. I have not tried it yet, but from looking at its changes it does look like fixes the ready issue. I don't know if it fixes the support issue .
As background on the $.support issue. The problem is that jQuery's feature detection creates a and then populates it using innerHTML. XUL divs do not support innerHTML, so the support code fails marking nothing as supported. There is actually a ticket on this that is open and being discussed for 1.7 - http://bugs.jquery.com/ticket/5206.