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I'm not sure about that rule either...seems odd and I don't recall anyone actually having that issue. A tidbit from the article describes something a little different which makes more sense to me.
If Jackson's holdout creeps into the regular season, he must report no later than between the eighth and ninth regular-season games to fulfill his contract. At that point, he would be eligible to hit the market as an unrestricted free agent in March 2009.
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As someone who has been on both ends of a loaded weapon I can only wish you well in your idealized little vision of what the world should be; I will continue to deal the world as it really is.
-BaldBil
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