Sadly this does look to be a known issue with the XP client:
http://support.microsoft.com/kb/969084As you have already mentioned the suggested workaround is to modify the registry on the client PC:
http://support.microsoft.com/kb/951608/As this is a client-side issue I do not believe that you will be able to find a server-side fix.
Will the third-party not modify their clients for you? The KB article seems to explain the need for modification quite nicely.
I am sorry I cannot offer a more optimistic response...