I had this problem too with one of my users of my server. His PC refused to stay in the game for longer than 30 seconds (either end of stream or socketexception). Another PC in the same network worked though. I've managed to fix it however:
That PC uses the onboard network controller (nvidia nforce4 sli chipset) to connect to the router. I had the most recent driver versions from the mainboard vendor gigabyte, BUT nvidia.com had newer ones. I downloaded and installed it and it works without any disconnects so far.
Started getting this issue more and more since the update. Hopefully it gets fixed soon, pretty stupid that it just started happening to me because of this past update.
If nothing has changed your hardware settings since the update then and it can be fixed. On the down side I could just mean minecraft is requiring more information. Could Some one tweet or tell notch over IRC the link to this thread?
I don't know if this will help any of you, but this was happening to me too. The problem was with my network adapter. Just going into my device manager and hitting the update button didn't do anything. I had to go the the manufacturers site and manually download and update the drivers.
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Well yea ive been getting this too but only mayb like a week and a half ago and only when i try to play my multiplayer server and i cant log in my friends can but i can i im getting really ****ing mad and idk wtf 2 do >.
I would love to use the fix that has been posted before that states all you need to do is raise your transmit buffer on your network card, but what no one has explained is how you do that on a card that doesn't have that option in device manager!
worked fine before, did notice a small update the other day, maybe a bug as a result of it. It buggers up my whole internet connection. All slows down, have to reboot both routers. I have access point downstairs and a wireless repeater upstairs which I connect to with an Ethernet cable.
Add another person to the "I have this too" list. I host a server and can join it with no issues, but no one else can join (this error pops up). Ports Forwarded, static ip, drivers updated, plenty of RAM, Firewall disabled, Anit-virus turned off, wired and wireless connection make no difference. I have searched far and wide for a solution and all paths lead to a dead end for me. I'll keep searching for a solution and post it here if I do somehow find one, but I'm almost out of leads. Hopfully Notch will eventually see this thread and come up with a solution.
EDIT: I think this problem may just be with the computer. Downloaded the server stuff onto my sisters laptop and was able to connect both computers to the server instantly. When I try to connect her laptop to the server on the home computer, I get the error.
Seriously Mojang, you refuse to acknowledge this problem on your websites, and there's no way of directly contacting you about this situation. I would like to at least know that they plan on fixing this MASSIVE problem that's been going on for almost half a year. I want to be able to play with my friends.
I know it's still in the Beta state, but this has gone on way too long without fixing it.