I found a fix. I'll be verbose to make this better for search engines :-)

So after upgrading to httpd-2.0.52-41.ent.7.centos4 under CentOS-4.8
and/or httpd-2.2.3-31.el5.centos.4 under CentOS-5.3 our client-cert
based authentication started failing for all versions of MSIE (Internet
Explorer)

httpd-2.0.52 produced the following error

[Thu Apr 01 12:41:41 2010] [error] SSL Library Error: 336068931
error:14080143:SSL routines:SSL3_ACCEPT:unsafe legacy renegotiation disabled


Whereas httpd-2.2.3 produced

[Fri Apr 02 09:54:36 2010] [debug] ssl_engine_kernel.c(426): Changed
client verification type will force renegotiation
[Fri Apr 02 09:54:36 2010] [info] Requesting connection re-negotiation
[Fri Apr 02 09:54:36 2010] [debug] ssl_engine_kernel.c(625): [client
218.101.54.25] Performing full renegotiation: complete handshake
protocol (client does not support secure renegotiation)

What I'm guessing has happened is openssl was patched to fix the
renegotiation flaw discovered last year, and although Firefox-3.5+ and
Chrome-5.036+ work fine with this updated version, MSIE 7 and 8 still
don't contain a fix?

Anyway, google final lead me to a new Apache option. Adding the
following line to your config will make Apache (mod_ssl actually) revert
to the older "insecure" option, and then MSIE will work again

 SSLInsecureRenegotiation on

Obviously we now need to track MSIE patches and wait until that is
fixed, and then remove this option. Thanks Microsoft, you never cease to
disappoint me
-- 

Cheers

Jason Haar
Information Security Manager, Trimble Navigation Ltd.
Phone: +64 3 9635 377 Fax: +64 3 9635 417
PGP Fingerprint: 7A2E 0407 C9A6 CAF6 2B9F 8422 C063 5EBB FE1D 66D1

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