Considering he mentioned Cold Fusion, that is quite possible.  Disclaimer, the application to uses the primary database I support is written in Cold Fusion, and I have had issues with...

The column definitions of the returned tables from multi-line and in-line table valued functions are stored in sys.columns.  Run the following and see what you get:

How did you upgrade the database?

Also, could you post the DDL for the table?

Looking through this thread it is hard to determine, but have you ever provided the expected results based on the sample data provided?

I think there is more to the second update than you provided in your mockup.  Looking at the deadlock graph it looks like the query is cutoff in the inputbuf...