I'm not quite sure what you mean by third party cookie. The cookie should only be active within the domain I set it in, or at least I assume it would be that way. Maybe you can expand on what you mean.
Cookie space should not be the issue as the cookie is only storing ~50 characters or less and cookies on other sites seem to work fine. The machine also does not seem to be dropping any other cookies.
The problematic computer is a windows XP home edition with IE7. Originally it was IE6, so one of my first attempts to fix this was to update it to 7.
I don't think I've ever quite seen a problem like this before, because it's so peculiar. Personally I'd like to just reformat the whole machine and make it all open source software based but the help desk folk don't like that idea much :)
Is there a way to preserve linebreaks in nodes without typing <br>?
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Want more info? How to link or
or How to display code and escape characters
are good places to start.