I just ran into the same problem. However , I'm not sending anything to the server or evaluating any strings for now.
All I do is

Code:
function client_connect_to(STRING* ip_string,STRING* session_id)
{
	session_connect(session_id, ip_string);
	while(dplay_status < 2) wait(1); // wait until the session is opened or joined


DPlay Status is stuck on 1 on client , server says 8.
The code for the server is only session_open , wait 5 sec. level_load("empty.wmb") ...
I just ran into a post, the problem was solved by reinstalling, but I might try it later.

PS.: Just to inform you that this problem occurs even without the evaluation of the strings that you mention.
*EDIT*
I just found out why it was happening in my project.
I used #ifdef server | #else | #endif and #define server for server app and //#define server in client (started in "Run current script")
After removing those #defines I used if(connection == 1 || 3) else{} and started using "Test Run". Everything works fine, dplay_status goes up to 6 on client with entity created and rotated by server.

Last edited by EpsiloN; 09/08/13 11:59.
Extensive Multiplayer tutorial:
http://mesetts.com/index.php?page=201