Diablo 2 TCP/IP Strange Host Lag

Diablo 2 has some very strange lag issues when hosting a TCP/IP game. The game is absolutely fine for a period of time, usually between 10 minutes to half an hour, but it can be as low as 5 minutes and as high as two hours.

Then the lag slowly begins to affect the host, and only the host. The strange part is that it only lags when moving my cursor. If my cursor is still, the game runs completely fine.

I've tested it now by running two instances of the game, and there are absolutely no adverse effects on the instance that is not hosting. Looking at task manager the host instance uses more memory, but that is to be expected. In low load scenarios it uses 280MB compared to 144MB of the client. Playing my client game while hosting with a dummy character works just fine.

The CPU usage is different however, with it steadily climbing while the game is frozen, up from about 1.5% usage to 10% and stays there flat, until I stop moving my mouse and the game instantly runs fine again. The same lag behaviour is persistent even when leaving the game and moving the cursor in the main menu. The only thing that removes the lag from the instance is restarting it.

I've also tested the game in a Windows XP virtual machine, where everything works like it should with no lag problems whatsoever.

The PC I'm playing the game on runs W10 with a Intel i7 3930K processor, a Nvidia GTX 980 graphics card and 28GB of RAM. All drivers are up to date, AV is set to exclude the Diablo exes, everything is set to pass through the firewall, I've tried to exempt it from DEP (which fixed an unrelated issue that I no longer have) and nothing seems to fix it.

Is there anything I can do to fix this, or do I just have to use a dummy instance as host?
God we have the same issue, has is been resolved by anyone?
what is described is memory leak, and what almost always solved it for me (the problem would randomly come and go during lengthy periods of time) was to disable sound using the -ns target command

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