Connection Lost

I am having trouble staying connected in a LAN world.

What I expected to happen was...:
Stay connected.

What actually happened was...:
Disconnected

Steps to Reproduce:
1. Join LAN world
2. Play for a bit
3. Get kicked out.

Note: It seems to occur when my friend and I are close to eachother. I've changed multiple settings to see if it would fix the problem but it doesn't. My friend is running Minecraft 1.7.4 and OSX 10.7.5 and does not seem to have the same issues.