What's happened for me since a belated jump from 1.7.6 to 1.7.9 is that the host of a LAN game consistently appears as Steve to everyone else (1-2 other players, 7 instances). Other players see themselves fine, and host sees themselves and everyone just fine.
When the host uses minecraft_server.1.7.9.exe instead of opening to LAN from single player, all skins load normally.
Edit: Just checked this on 1.7.7 with one game and the non-host player looked like Steve. I would have done more testing, but my sister is tired of being my guinea pig...
Tracy Semmelink
What's happened for me since a belated jump from 1.7.6 to 1.7.9 is that the host of a LAN game consistently appears as Steve to everyone else (1-2 other players, 7 instances). Other players see themselves fine, and host sees themselves and everyone just fine.
When the host uses minecraft_server.1.7.9.exe instead of opening to LAN from single player, all skins load normally.
Edit: Just checked this on 1.7.7 with one game and the non-host player looked like Steve. I would have done more testing, but my sister is tired of being my guinea pig...