In the Minecraft mod packs Tekkit and Technic, Jacketed Wire doesn't appear to connect to Insulated Wire, levers or anything else apart from lamps. Does anyone know how it works?
You need to put some bare wire on it in the same place you want to connect the jacketed wire. This is so it looks like it touches the block instead of floating
Jacketed wire is designed mostly for connecting Red Alloy Wire to Redstone Tubes (Advanced version of Pneumatic tubes which are awesome btw), But due to it being a rather clunky and ineffective wire it's used mostly for decoration in a lot of builds.
The best way to connect the 2 wires would be to use Red Alloy Wire and lead that into the Jacketed Wire as suggested above.
The best feature by far about jacketed wire though is that it can be made out of near enough any block in the Minecraft world that you can cut with a Handsaw so it's great for blending your cabling into your home if you like being all fung shei about it.
Check the wiki for more info - http://thetekkit.wikia.com/wiki/Jacketed_Wire