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Russell, it sounds like you might have already tried this, but this helped me out. Now it works better (most of the time)...
Let me know if that helps...
That was one of the first posts on the subject I found and making the changes it recommends did not cure my ailment.
Being that IE 8 is going to have a significantly wider rollout over the next few months I'm suprised there isn't more noise about this.
You're absolutely right, this is a big deal. And there should be more noise about it. I voted for the bug tracking issue you posted above (only the second vote). Anyone else who reads this thread should vote for it too.