• Two players sync'd
• One player launches while other player watches tracking station
• Couldn't see the craft in tracking station until it hit about 70-80km above Kerbin
• Neither player used time warp during the launch

This doesn't sound like a bug IMO. I think this is normal DMP operation, as it stands now. This should probably be closed.

Normal operation atm, but it won't be forever - After I find a solution to spawn things flying in atmosphere I'd like to get rid of this issue completely :)

This might have been accidently addressed in 32f77f8, but FLYING status craft are the final piece.

I found that enabling modcontrol resolve this for me

Turning mod control off caused problems in 0.1.3.1, but that's since been fixed in dev.

The last issue I'll need to fix is in-atmo spawning, then I'll close this bug.

Closing this one now, I'll open a new bug and reference in-atmosphere spawning, as that's the very last thing left that causes any delays.

This is a side effect of not being able to spawn a vessel flying in the atmosphere. I did attempt to spawn them in orbit and shift them (thats the sun load hack branch) but it didn't appear to be reliable.

There's also a 2.5km limit imposed by KSP that would be nice to work around as well...

I'll treat this bug as "Unable to spawn vessels in flight in atmosphere".

I run the server and some friends connect with me.
We are all sync'd.
Some players circle around overhead the space station and one player launches.But no one can see each other.