AJAX and smoothbox - no resolution!

An update on the past few days trying to get smoothbox links to open from a list generated using AJAX. We couldn't solve it. I don't know a great deal about Mootools, but the front end developer seems to think it's basically impossible. I just think we haven't cracked it yet. I created a test page in which I used the AJAX object in Mootools to create the links, but it still wouldn't recognize the 'class="smoothbox"' in the link, just opened it to a new window.

Frustration! Sadly today is the day we show the site to TPTB, so those beautiful smoothbox layovers are off the site, replaced by clunky old school window popups.
I simply can't get it into my head that we can't use AJAX, and Smoothbox together. The front end developer (who for brevity's sake I'll refer to as MS from now on) thinks that it wouldn't matter which framework he used, that it simply won't work. I think we're just missing something still, so if anyone comes across this while searching for a solution, AND finds a solution, please let me know how it works! If for some strange reason we crack it, I'll definitely post again as to how it was solved.

BFN