Newly-updated JS Fiddle demo, featuring revert: invalid, so dropping the draggable div anywhere but the droppable div will cause the draggable to animate back to its starting position. If that'd be appreciated. Or desired at all...
To address the requirement for the draggable object to be resizable as well, I don't think that this is possible, since both draggable() and resizable() respond to the same interaction. It may be possible, in some way, but it's currently beyond my ken, I'm afraid