I've noticed it works great long-distance as well =]
Also I have discovered that if you have conditions on an event "On packet type X" it does not seem to work.
On Packet Type X - Do something (this works)
On Packet Type X
PlayerObject.Count = 0 - Do something (does not work)
It seems I solved this by using SUB EVENTS
Hmm, Pixel People Online uses many of these and works fine. However, I often do comparisons to data from the network packet data.
Edit: Just checked and there is one event where it checks against a non-packet value, and it still works as expected. The Network plugin gets really weird with objects being created and destroyed it seems.