JQuery :: Live() And AddClass() - Clicking Certain Links Fetches A Comment Form

Using 1.4.1. A comments app. Clicking certain links fetches a comment form which displays below. The button then becomes a "cancel" link. Clicking that removes the form and sets the button back to its original state. Or so it should. I'm seeing some strange behavior. Some strange, but understandable, some not so much.

Basic code:

After removing the form, my code fetches it again and re-displays it. The problem appears to be that click event isstill "happening" and so live() fires immediately. I tried using stopPropagation(), which keeps the form from re-loading but for some reason also keeps displayFormHandler from being run on subsequent clicks.

I saw a hint in the comments for stopPropagation() and added, in cancelFormHandler:

And:

Again, this keeps the form from re-displaying but, bizarrely, causes displayFormHandler to always return false (the console.log() line runs every time). I can understand why the original problem happens but this doesn't make any sense at all. If the class has been removed, subsequent clicks should proceed normally because hasClass() is being evaluated at the time of the click, not when live() is called.