I'm pretty sure it isn't possible to do, not in On Demand instance at least. Jobin's solution is for the Download instance.
You will have to prevent the workflow transition using a custom worklow condition. Small plugin/script development needed.
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I'm On Demand instance and I do not have installed Scripting Suite plugin so I need to find a solution without scripting.
My first thought is add a project level field where I will store all users that have an issue in Progress.
I can do it with a post function.
After that add a condition that will check if this user is in this field that do not permit to move the issue.
But the problem is in conditional workflow I can work with only issue field and not some of global project field :(
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