Hi there,
Sorry to hear about your troubles. This is not a known issue per se, but it sounds like the exact same problem as from this thread:
http://arcengames.com/forums/index.php/topic,2023.0.htmlJust with a different trigger. But, the basic problem I think is that when too much data is sent, messages are going into a lost state and the network library is not recovering.
1. If you could check on the client and the host machines to make sure there are no error messages logged (in the Game Data Location directory, which may be different on each machine, but which you can find via the Settings window in the game). This would be something like NetworkClientErrors.txt, or ClientRecievingDataExceptions.txt, or something along those lines with an extension of txt. If you find any of those, if you could please post them, that would help me see if there is potentially an issue in the network library -- however, I've been talking with the network library author (this library is used in many games), and this seems unlikely (but it's good to check).
1.a. If you are playing on vanilla 2.000 version, you probably have some unrelated ClientRecievingDataExceptions logged, but go ahead and post them so that I can make sure those are not relevant. The latest prerelease,
2.001B includes some networking fixes that should fix the reconnect issue that you were having (that 99.5 sync issue is something that affects some people in 2.0 -- there is a workaround for that if you stay on 2.0, but it's simpler and better just to update to 2.001B).
2. Most likely the root cause here, as I noted on the other thread I linked to, is a bad network driver on one of the two machines, or some router firmware that is causing some sort of packet loss when it gets too much data at once. I'd suggest seeing if you can update the network drivers first, and the router firmware second, as the most likely solutions to this issue.
3. If you want to do the Shift+F3 thing (described in the other thread) to get more information on what exactly is happening, if the above two items don't hold a solution for you, that would probably be the next step. But I expect that either 1 or 2 above, most likely 2, is going to be the solution. There are hundreds of people playing the game in co-op without this issue, and the best guess we have as to a solution for this so far (since the other thread is not yet reported as resolved, it is still just a guess) is that there is a lower-level network issue at play here (driver/router), unless this is just some sort of very edge case bug in the network library itself.
Hope that helps!