Minecraft Character Stops, Everything Else Continues [Multiplayer]

I would be playing on a server with my friends over Skype, and my character would stop in its tracks. While it appears I am moving on my client, my friends would say that I was standing still. They would punch into what I would see as air and then I would get hurt.

I think I should also mention that eating, using potions doesn't effect my character and footsteps from walking can't be heard in-game when this bug takes effect.