jQueryMobile routing not working with AngularJS

I'm writing a mobile web app with jQueryMobile and I put in AngularJS to handle data binding. But this introduces routing problems on mobile devices. Below is the minimal code I could write to reproduce the problem. Everything works OK on Chrome on desktop, but when I try the same page from my android device I get the nasty "Error loading page". Problem can be fixed by using data-url for navigation but there's catch. I also need to package it up with phone gap. This means html is loaded by file:// and direct navigation(data-url) doesn't work(I tried)

<!DOCTYPE html>
<html ng-app>
    <head>
        <meta charset="utf-8" />
        <meta name="viewport" content="width=device-width, initial-scale=1" />
        <link rel="stylesheet" href="http://code.jquery.com/mobile/1.2.0/jquery.mobile-1.2.0.min.css" />
        <script src="http://code.jquery.com/jquery-1.7.1.min.js"></script>
        <script src="http://code.jquery.com/mobile/1.2.0/jquery.mobile-1.2.0.min.js"></script>

        <script src="https://ajax.googleapis.com/ajax/libs/angularjs/1.0.3/angular.min.js"></script>

        <script src="https://raw.github.com/tigbro/jquery-mobile-angular-adapter/master/compiled/jquery-mobile-angular-adapter-1.2.0.js"></script>        
    </head>

    <body>
        <div data-role="page" id="main">
            <a data-role="button" href="#sub">sub</a>
        </div>

        <div data-role="page" id="sub">
            <p>sub page</p>
        </div>
    </body>

</html>

Upon clicking the "sub" button user should be directed to hostname/#sub and it is on Chrome but weird things happen on android and browser is routed to hostname/#!/%23sub I guess this is URL encoded?

Also I should point out that by removing just the two script refenrences for angular and for JQM-angular adapter everything works(and no databinding of course).

i tried removing angular-jquery adapter and everything works as if by magic. also no issues with angular and jquery clashing.