user error: Duplicate entry '0' for key 1

We have been actively developing Drupal 4.65 (going to 4.66 but need to fix this first)
We are getting this on all new domains installed.

When we try to login

user error: Duplicate entry '0' for key 1
query: INSERT INTO watchdog (uid, type, message, severity, link, location, hostname, timestamp) VALUES (1, 'user', 'Session opened for admin.', 0, '', '/user/login?destination=node', '69.180.217.227', 1143885170) in /home/[username]/public_html/includes/database.mysql.inc on line 67.

After this error screen we are in fact logged in but...
When we try to logout.

user error: Duplicate entry '0' for key 1
query: INSERT INTO watchdog (uid, type, message, severity, link, location, hostname, timestamp) VALUES (1, 'user', 'Session closed for admin.', 0, '', '/logout', '69.180.217.227', 1143881936) in /home/[username]/public_html/includes/database.mysql.inc on line 67.

We can't add users and can't only login as admin but even that is hard and strange.

Its not the stuff found in this link.

http://drupal.org/node/21120

We've tried truncating watchdog and sessions and increasing the session id to 64 varchar as per the above link.

A developer made some changes in database.mysql.inc with sequences about a month ago and any new domains we add from that code are like this.

I'm not sure what he did and can't remember why it was needed but I don't think he knows how to fix. Either way we can't seem to get an answer on this and was hoping for some help.

I've pasted in the changes he made. The first entry is the patch applied to the database.mysql.inc file and I assume this is the problem. I may be wrong I don't know. Note that the entry after the '+' does not in fact wrap. I say this because this format for a diff is odd to me but comes straight form Subversion so who am I to question? It is one line obviously.

database.mysql.inc

Here is the patch that was applied
@@ -151,7 +151,7 @@
*/
function db_next_id($name) {
$name = db_prefix_tables($name);
- db_query("INSERT INTO {sequences} (name) VALUES ('%s') ON DUPLICATE KEY UPDATE id = id + 1;", $name);
+ db_query("INSERT INTO {sequences} (name) VALUES ('%s') ON DUPLICATE KEY UPDATE id = id + 1 + (LAST_INSERT_ID(id+1)*0);", $name);
return mysql_insert_id();
}

This is how it is now and I would assume what is causing the problem.

function db_next_id($name) {
$name = db_prefix_tables($name);
db_query("INSERT INTO {sequences} (name) VALUES ('%s') ON DUPLICATE KEY UPDATE id = id + 1 + (LAST_INSERT_ID(id+1)*0);", $name);
return mysql_insert_id();
}