Introducing jsPlumb
jsPlumb is a jQuery plugin that enables you to connect elements on an HTML page with visual links, both statically, and, from version 1.1.0, by clicking and dragging with the mouse.
there are several demonstration pages available at http://morrisonpitt.com/jsPlumb/html/demo.html
the code is open sourced and MIT-licensed, and is hosted on Google Code at http://code.google.com/p/jsplumb/
this blog will keep you up to date with enhancements and whatever else goes on in jsPlumb land.