Alright, since I'm not really contributing to the conversation (I'm on a roof!), Xiulcoatl is going shopping.
Togo, are the following available?
1) Belt of Battle [Magic Item Compendium]
2) Item [your choice] of Expansion, Augmented [Custom psionic item]
3) Pectorals of Maneuverability, Lesser
4) Various wands
If any are available, I'll write out a post of him exploring and seeking them out.
Edit: Another thought - if Xiulcoatl continues to lag behind the others in power / ability, perhaps we could use the variant reach rules for dragons (per Draconomicon)? He'd only gain reach, not lose anything like some dragons do ... (his tail would become 15ft reach instead of 10ft).