Possible WebDAV issue on XP-Pro/OfficeXP client configuration...

[Con_Phi]

I posted this on Sharepoint forum.. but didn't get any response until now. After some research, I realised that this issue might be related to webDAV. So, I am posting this issue here. I would like some MSFT to have a look at this issue.
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Scenario:
A client with WindowsXP-OfficeXP desktop configuration is trying to open and edit a Word document by clicking a link pointing to a word document stored on SPS2001 (Sharepoint Portal Server on W2K) Document Library. The File Type DOC is set to open in a new Word Application window.
Expected:
Once the document is opened, Check-In/Check-Out command (Document Management feature) should be available in the File menu as appropriate.
Actual:
There is no Check-In/Check-Out command (Document Management feature) available in the File menu.
Fact:
This feature was working fine from a client with Windows2000-Office2000 desktop configuration while accessing the same resource.
Additional Information:
Even though Office-XP application has the necessary Sharepoint Client components in-built, I tried installing Sharepoint Client Components(SP2a for SPS2001) explicitly. But the feature still doesn't work.
When the resource is accessed through Web Folders(My Network Places), the Check-In and Check-Out commands are visible in the File menu. But when the same resource(Word document) is opened by clicking on a hyperlink pointing to the resource, the commands aren't visible in the File menu.
Can someone please let me know of any workaround, to enable the feature I expect?
Or, if there is any KB article relating to this issue, please point that to me.
Thanks,
Con_Phi.

[Con_Phi]

The following is from IIS log file which displays the actions that were carried out during the time a word document (in this case 'Authentication and Security(3.1).doc') was opened. Can some expert IIS troubleshooter please have a look at it and let me know what might be happening in the background?
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2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SEARCH /workspace - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 PROPFIND /workspace/Documents/user+testing+folder/Authentication+and+Security(3.1).doc - 404 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx - W3SVC1 SERVER xxx.xx.xx.xx 80 OPTIONS / - 401 Microsoft+Data+Access+Internet+Publishing+Provider+Protocol+Discovery
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 OPTIONS / - 200 Microsoft+Data+Access+Internet+Publishing+Provider+Protocol+Discovery
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 OPTIONS /workspace/Documents/user+testing+folder/Authentication+and+Security(3.1).doc - 200 Microsoft+Data+Access+Internet+Publishing+Provider+Protocol+Discovery
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 PROPFIND /workspace/Documents/user+testing+folder - 207 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 PROPFIND /workspace/Documents - 207 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SUBSCRIBE /workspace/Documents - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SUBSCRIBE /workspace/Documents - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SUBSCRIBE /workspace/Documents - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SUBSCRIBE /workspace/Documents - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SUBSCRIBE /workspace/Documents - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SUBSCRIBE /workspace/shadow/Documents - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SUBSCRIBE /workspace/shadow/Documents - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SUBSCRIBE /workspace/shadow/Documents - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SUBSCRIBE /workspace/shadow/Documents - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
2004-06-18 20:38:07 xxx.xx.xx.xx domain\user W3SVC1 SERVER xxx.xx.xx.xx 80 SUBSCRIBE /workspace/shadow/Documents - 200 Microsoft+Data+Access+Internet+Publishing+Provider+DAV
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Thanks,
Con_Phi.

[rooz...@gmail.com]