The patch has been updated as of yesterday (same link in Glitches Forum Sticky) and will work now / apparently the server that was used iniatially fragmented it during download and caused some systems not to deploy it properly. Now when you try to use the Walkie Talkie at an inoportune time Niegel will only comment on what it is instead of using it and throwing the player back to a previous setting.
Watching: Dark Shadows
Reading: Angelique's Descent
Playing: WoW and living in Kil' Jaeden