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From experience, I can tell you to not bother trying to install any of the hacks floating around. None that I found work, or won't work on the version of XOOPS you want to use.
The answer is in XOOPS itself which contains the code to make cookies work correctly. It was commented out in one of the updates because of a potential security risk.
You need to find the thread here that describes exactly for you where in each file you need to un-comment the code. It is only a few places.
I did this about six months ago and it has worked perfectly ever since. If you want to log on to www.bloggerforum.com and then check out the cookies it will set on you computer for you, feel free. I wish I could tell you exactly where it is, but I have forgotten. This will be a bugger if I install the final release of 2.0.6 since I'll have to go in and un-comment again.