Updated my server to 1.4.6 today. Played for about 30 minutes with a friend, Both accounts purchased through minecraft.net. After the 30 minutes the server diconnected us both with the End of Stream Error.

What I expected to happen was...:
I expected to play Minecraft with my friend for a good few hours before the server threw up the End of Stream error on us.

What actually happened was...:
I updated my client and server to 1.4.6, and my friend updated his client to 1.4.6. We both connected to my server and began working on a redstone secret door. After 30 minutes of normal play, the server disconnected us both with the End of Stream error. We tried reconnecting several times but the server gave the same error. It isnt internet related due to the fact that this server is ran on my own personal machine, and I should still be able to connect. I tried restarting the server but it still didn't work. I also tried getting a new .exe from minecraft.net, but that didnt work either. I have ran this server on my machine since 1.3.2, and have never had any problems, so this has to be related to 1.4.6. Also played with the same friend the night before on 1.4.5 and played for hours without any issues. The server world was also created in 1.3.2. The server console does not display any error, only; [INFO] playerusername lost connection: disconnect.genericReason 2012-12-20 22:08:10. I also noticed the Java binary does not close when stopping the server thanks to Task Manager. All server settings are default beside command blocks being turned on.

Steps to Reproduce:
1. Updated server and client to 1.4.6
2. Logged in and connected to my server.
3. Played for around 30 minutes.
4. Server disconnects my friend and I with the End of Stream error.
5. Attempted to restart server and get a new server .exe from minecraft.net, both failed.
6. All attempts to connect fail with the same error.