Point and Print Policy - multiple print servers

We are having the following problem in Win 2000 SP4 AS environment.
We have one primary print server (clustered) that controls access to
all our network printers. We're trying to allow some users to share
their desktop printers for confidential printing (Win XP Sp1).

Our policy is defined as follows

Users can only point and print to machines in their forest - disabled
Users can only point and print to these servers - Enable
Server list - server1.fqdn.domain.name; pcname.fqdn.domain.name

The destination PC picks up the definition in the registry correctly
(HKCU\Software\Policyes\Microsoft\Windows NT\Printers\PointandPrint).
The policy is applied at the domain level.

User gets "A policy is in effect on your computer which prevents you
from connecting to this print queue. yada yada"

If I define a new policy at a lower OU with just
pcname.fqdn.domain.name defined, it works. Plus I can still add
printers defined in server1.fqdn.domain.name, even though that entry
does not appear in the HKCU entry.

RSOP confirms that policies are being picked up properly.

This is rather strange, but I'll offer up what appears to be the
answer to this problem, as I've been doing some testing as I write
this post:

the server names are separated by semicolon WITHOUT spaces. If I
remove the space (which is documented in MS KB ariticle 319939) things
work as expected.

Can anyone confirm this??