Mouseout delegate

Good evening,
Ive been trying to build by own type of menu using jQuery, and want to it to hide when the mouse is moved out of the div, problem is it doesnt seem to propagate down. What Im trying to do is append the div inside the div so the mouseout fires when moved out of the div (including the child).

Im not sure what Im doing wrong here, can someone have a look and tell me what Im doing wrong please?

Ive put it in jsfiddle here.

I know currently it says 'hello', but the idea is to display a lot more links via ajax, once I can figure out the mouseout event.

Thanks in advance
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    $(this).append("<div id=\"menuSubItem\">hello</div>");

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