Session table isn't getting written to correctly?

Ok I've been searching the forums for about an hour now and cant find this answers so if this is a double post, I apologize. Just post a link to the other one and I'll be on my way.

I'm working with drupal 5.0 beta 1 (apache 2 / php 5.2 / mysql 5.0(I think) ). The problem sounded exactly similar to this persons problem: http://drupal.org/node/98056 where login does work, but if I try to click on anything that requires admin rights I get access denied. the post suggested a patch for it in the session.inc file, but in 5.0 beta 1 this seems to have already been done.

Here is the detective work I've done so far other wise scroll to the bottom for my question:

I checked the sessions table using this query:

SELECT * FROM sessions s ORDER BY timestamp desc;

the result set:

uid, sid, hostname, timestamp, chache, session
--------------------------------------------------------------------
0, '046888ba6047d042f60ce0abd6375951', '127.0.0.1', 1164554529, 0, ''
0, '7717bd64c9c1293c8fbc5e4f3b0f7777', '127.0.0.1', 1164553889, 0, ''
0, '9c60dcae94cfd174d9439662a5a7e128', '127.0.0.1', 1164494659, 0, ''
0, 'ac41107741cdc8e35d65f5fb8c58a9fa', '127.0.0.1', 1164493967, 0, ''
0, '46bd8205701ede4382ce71189ec2b99a', '127.0.0.1', 1164493730, 0, ''
0, '1d0d4fb6c8fbadded714186d63d2cfe5', '127.0.0.1', 1164493229, 0, ''

now because they are ordered descending the most recent one is on top so I looked at my cookies in firefox and sure enough my sessionID was 046888ba6047d042f60ce0abd6375951 which maches the first one there. So I went back to session.inc and looked at the code where I found this line:

// Otherwise, if the session is still active, we have a record of the client's session in the database.
  $user = db_fetch_object(db_query("SELECT u.*, s.* FROM {users} u INNER JOIN {sessions} s ON u.uid = s.uid WHERE s.sid = '%s'", $key));

I used that code and replaced my sessionID in for sid and came up with this query:

SELECT u.*, s.* FROM users u INNER JOIN sessions s ON u.uid = s.uid WHERE s.sid = '046888ba6047d042f60ce0abd6375951'

which returned this:

uid, name, pass, mail, mode, sort, threshold, theme, signature, created, access, login, status, timezone, language, picture, init, data, uid, sid, hostname, timestamp, cache, session
----------------------------------------------------------------------------------------
0, '', '', '', 0, 0, 0, '', '', 0, 0, 0, 0, '', '', '', '', '', 0, '046888ba6047d042f60ce0abd6375951', '127.0.0.1', 1164554529, 0, ''

now I then looked at the next block that would be run in the session.inc:

// We found the client's session record and they are an authenticated user
  if ($user && $user->uid > 0) {
...
}
// We didn't find the client's record (session has expired), or they are an anonymous user.
  else  {
    $user = drupal_anonymous_user($user->session);
  }

The problem is the query is returning uid 0 which will make the logic go to the else clause and anonymous access to be given instead of authenticated access.

So my question is, why is the uid 0 being stored in the sessions table if i'm trying to login as the root user with uid 1??
Any ideas??