diff --git a/Subsurface/Source/Characters/Animation/Ragdoll.cs b/Subsurface/Source/Characters/Animation/Ragdoll.cs
index 3f966bc69..7fef49a41 100644
--- a/Subsurface/Source/Characters/Animation/Ragdoll.cs
+++ b/Subsurface/Source/Characters/Animation/Ragdoll.cs
@@ -1205,6 +1205,23 @@ namespace Barotrauma
         {
             if (GameMain.NetworkMember == null) return;
 
+            for (int i = 0; i < character.MemPos.Count; i++ )
+            {
+                if (character.Submarine == null)
+                {
+                    //transform in-sub coordinates to outside coordinates
+                    if (character.MemPos[i].Position.Y > ConvertUnits.ToSimUnits(Level.Loaded.Size.Y))                    
+                        character.MemPos[i] = PosInfo.TransformInToOutside(character.MemPos[i]);                    
+                }
+                else if (currentHull != null)
+                {
+                    //transform outside coordinates to in-sub coordinates
+                    if (character.MemPos[i].Position.Y <  ConvertUnits.ToSimUnits(Level.Loaded.Size.Y))                    
+                        character.MemPos[i] = PosInfo.TransformOutToInside(character.MemPos[i], currentHull.Submarine);                    
+                }
+            }
+
+
             if (character != GameMain.NetworkMember.Character || !character.AllowMovement)
             {
                 //use simple interpolation for other players' characters and characters that can't move
@@ -1226,6 +1243,22 @@ namespace Barotrauma
             }
             else
             {
+                for (int i = 0; i < character.MemLocalPos.Count; i++)
+                {
+                    if (character.Submarine == null)
+                    {
+                        //transform in-sub coordinates to outside coordinates
+                        if (character.MemLocalPos[i].Position.Y > ConvertUnits.ToSimUnits(Level.Loaded.Size.Y))                    
+                            character.MemLocalPos[i] = PosInfo.TransformInToOutside(character.MemLocalPos[i]);                    
+                    }
+                    else if (currentHull != null)
+                    {
+                        //transform outside coordinates to in-sub coordinates
+                        if (character.MemLocalPos[i].Position.Y < ConvertUnits.ToSimUnits(Level.Loaded.Size.Y))                    
+                            character.MemLocalPos[i] = PosInfo.TransformOutToInside(character.MemLocalPos[i], currentHull.Submarine);                    
+                    }
+                }
+
                 if (character.MemPos.Count < 1) return;
 
                 overrideTargetMovement = Vector2.Zero;
@@ -1244,7 +1277,7 @@ namespace Barotrauma
                     if (errorMagnitude > 2.0f)
                     {
                         //predicted position was way off, reset completely
-                        Collider.SetTransform(serverPos.Position, Collider.Rotation);
+                        SetPosition(serverPos.Position, false);
                         //local positions are incorrect now -> just clear the list
                         character.MemLocalPos.Clear();
                     }
diff --git a/Subsurface/Source/Map/Submarine.cs b/Subsurface/Source/Map/Submarine.cs
index e48cb5169..4b39d0af5 100644
--- a/Subsurface/Source/Map/Submarine.cs
+++ b/Subsurface/Source/Map/Submarine.cs
@@ -34,7 +34,7 @@ namespace Barotrauma
     {
         public static string SavePath = "Submarines";
 
-        public static readonly Vector2 HiddenSubStartPosition = new Vector2(-50000.0f, 80000.0f);
+        public static readonly Vector2 HiddenSubStartPosition = new Vector2(-50000.0f, 10000.0f);
         //position of the "actual submarine" which is rendered wherever the SubmarineBody is 
         //should be in an unreachable place
         public Vector2 HiddenSubPosition
@@ -1054,7 +1054,10 @@ namespace Barotrauma
             Description = ToolBox.GetAttributeString(submarineElement, "description", "");
             Enum.TryParse(ToolBox.GetAttributeString(submarineElement, "tags", ""), out tags);
 
+            //place the sub above the top of the level
             HiddenSubPosition = HiddenSubStartPosition;
+            if (Level.Loaded != null) HiddenSubPosition += Vector2.UnitY * Level.Loaded.Size.Y;
+
             foreach (Submarine sub in Submarine.loaded)
             {
                 HiddenSubPosition += Vector2.UnitY * (sub.Borders.Height + 5000.0f);
diff --git a/Subsurface/Source/Networking/GameClient.cs b/Subsurface/Source/Networking/GameClient.cs
index 820bcc16e..fc72b5305 100644
--- a/Subsurface/Source/Networking/GameClient.cs
+++ b/Subsurface/Source/Networking/GameClient.cs
@@ -128,6 +128,8 @@ namespace Barotrauma.Networking
             config.SimulatedDuplicatesChance = 0.05f;
             config.SimulatedMinimumLatency = 0.1f;
             config.SimulatedRandomLatency = 0.05f;
+
+            config.ConnectionTimeout = 600.0f;
 #endif 
 
             config.DisableMessageType(NetIncomingMessageType.DebugMessage | NetIncomingMessageType.WarningMessage | NetIncomingMessageType.Receipt
diff --git a/Subsurface/Source/Networking/GameServer.cs b/Subsurface/Source/Networking/GameServer.cs
index 7bb5526dd..fcdce1f09 100644
--- a/Subsurface/Source/Networking/GameServer.cs
+++ b/Subsurface/Source/Networking/GameServer.cs
@@ -76,6 +76,8 @@ namespace Barotrauma.Networking
             config.SimulatedRandomLatency = 0.05f;
             config.SimulatedDuplicatesChance = 0.05f;
             config.SimulatedMinimumLatency = 0.1f;
+
+            config.ConnectionTimeout = 600.0f;
 #endif 
             config.Port = port;
             Port = port;
@@ -472,16 +474,9 @@ namespace Barotrauma.Networking
 
                     foreach (Client c in ConnectedClients)
                     {
-                        if (gameStarted)
+                        if (gameStarted && c.inGame)
                         {
-                            if (c.inGame)
-                            {
-                                ClientWriteIngame(c);
-                            }
-                            else
-                            {
-                                ClientWriteLobby(c);
-                            }
+                            ClientWriteIngame(c);                         
                         }
                         else
                         {
@@ -606,7 +601,6 @@ namespace Barotrauma.Networking
                         //break;
                 }
             }
-
         }
 
         private void ClientReadIngame(NetIncomingMessage inc)
@@ -617,6 +611,8 @@ namespace Barotrauma.Networking
                 inc.SenderConnection.Disconnect("You're not a connected client.");
                 return;
             }
+
+            if (gameStarted) c.inGame = true;
             
             ClientNetObject objHeader;
             while ((objHeader = (ClientNetObject)inc.ReadByte()) != ClientNetObject.END_OF_MESSAGE)
@@ -924,7 +920,6 @@ namespace Barotrauma.Networking
             List<CharacterInfo> characterInfos = new List<CharacterInfo>();
             foreach (Client client in connectedClients)
             {
-                client.inGame = true;
                 if (client.characterInfo == null)
                 {
                     client.characterInfo = new CharacterInfo(Character.HumanConfigFile, client.name);
diff --git a/Subsurface/Source/Physics/PhysicsBody.cs b/Subsurface/Source/Physics/PhysicsBody.cs
index 79ff44613..d3a27c786 100644
--- a/Subsurface/Source/Physics/PhysicsBody.cs
+++ b/Subsurface/Source/Physics/PhysicsBody.cs
@@ -37,6 +37,42 @@ namespace Barotrauma
 
             Timestamp = time;
         }
+
+        public static PosInfo TransformOutToInside(PosInfo posInfo, Submarine submarine)
+        {
+            //transform outside coordinates to in-sub coordinates
+            return new PosInfo(
+                posInfo.Position - ConvertUnits.ToSimUnits(submarine.Position),
+                posInfo.Direction,
+                posInfo.ID,
+                posInfo.Timestamp);            
+        }
+
+        public static PosInfo TransformInToOutside(PosInfo posInfo)
+        {
+            Submarine closestSub = null;
+            foreach (Submarine sub in Submarine.Loaded)
+            {
+                Rectangle subBorders = sub.Borders;
+                subBorders.Location += sub.HiddenSubPosition.ToPoint() - new Point(0, sub.Borders.Height);
+
+                subBorders.Inflate(500.0f, 500.0f);
+
+                if (subBorders.Contains(ConvertUnits.ToDisplayUnits(posInfo.Position)))
+                {
+                    closestSub = sub;
+                    break;
+                }
+            }
+
+            if (closestSub == null) return posInfo;
+
+            return new PosInfo(
+                posInfo.Position + ConvertUnits.ToSimUnits(closestSub.Position),
+                posInfo.Direction,
+                posInfo.ID,
+                posInfo.Timestamp);            
+        }
     }
 
     class PhysicsBody