CAVEAT: I have no SQL/Server experience... but..
The error message seems pretty exemplary to be fair. PROIV is presumably trying to lock records in a way that SQL/Server simply does not support when accessing remote tables (ie. tables in another SQL/Server database or instance whatever the appropriate terminology is). It's not necessarily any kind of bug it may really, legitimately not be supported.
You're not telling us very much about the context, even the type of PROIV function in which you're doing this. If I was to make a wild-assed guess I'd say I probably would not expect PROIV to provoke this problem with a report or update but it might within a paging screen in C or D mode?
If the use of the remote table is essential to your problem (ie. you can't change that aspect of things), can you play with the function maybe and see if the problem relates to specific modes and if, say, it's change mode try updating the file in another way than, say. as the primary file in a paging screen?
I asked my question to pro-4 directly as well... They indicated that pro-4 doesn't support accessing remote tables.... My point would be that since it is a query it shouldn't have been locking anything. The error I am receiving is due to what ever other code they wrap around my sql. Which from the error it sounds like they were using a cursor which I am not even sure was necessary.