@Aren - I upgraded to 3.0.2 but Im still unclear at reducing draw calls.
Can anyone help answer my previous post?
Update 10-07-13:
In case anyone else runs into this problem here's what I've come up with.
1) Use NGUI Tool to normalize the depth hierarchy; NGUI -> Normalize Depth Heirarchy
2) Reduce the number of panels (if possible); as Aren points out it breaks up the draw order
3) Ensure panels have a unique depth
4) Ensure the same widgets are on the same depth even if they are in different panels (NGUI Tool will do this for you) ie sprites = 0, labels = 1, etc
5) If the widgets do not move, ensure to check the static property on the UIPanel script
Please let me know if there are other tips or corrections and I'll update this. Thanks!