The system in this thread doesn't work at the moment due to transaction malleability.

Yeah, but the idea presented later (and here: https://en.bitcoin.it/wiki/Contracts#Example_5:_Trading_across_chains) is not compromised and is a great one.

Has anyone tried implementing it in any fashion?

https://en.bitcoin.it/wiki/Contracts#Example_5:_Trading_across_chains
Tx2(the contract) can be invalidated by Tx1(the payment) mutant, if 'B' won't cooperate with 'A' to resolve this issue 'A' will loose his coins.