Lockup/Crash in Multiplayer after resting

A friend and I have been playing through the game over the net via tcp/ip and we recently entered the dragon's eye cave. Now, each time we rest the game gets screwed up. Right after we rest he can see my chars moving and he can see me talking, but I can't see anything he says, attack any creatures, and his chars don't move. We are both running Win '98 and we were using patch 1.05 (upgraded to 1.06 but it didn't fix) Has anyone else run into this problem?

I had this problem aswell this happens on level 2 and four i think and can also happen to u later in wyrms (something)
it is that the client gets disconnected when u rest and save on this level ***caution*** always save before resting aswell because the client side chars will not be saved
this is what happened to me: we went to the person who offers to sleep without beeing disturbed before we got great quest exp (6.500 per char)
then we slept and saved, the result was my chars (clients side) were missing these exp also side effect is that spells dont recharge, but until now my 3 chars are running around with 6.500 points less as host side, its a bug and i wrote to interplay about it.

you can sleep on level one of dragons eye monsters may appear but the bug-moster will stay away.

as for later in the game cos there are more areas where this happens always save before and after sleeping!

regards Dukem