Connection Lost, Timed Out When attacked by monsters or players.

Basically when im in my realm which a just bought as soon as I encounter and get attacked by enemies the game seems to stall, enemy stops moving, cant collect blocks etc even though I can still move around. 10 seconds later comes up with "connection lost time out". This happens without fail when an enemie hits me. Its not a network issue as on the same network with a different computer it runs fine. I have tried clean reinstalls of minecraft, java and drivers etc and even a full clean system wipe, yet the problem still happens. This seems limited to 1.8.1 hosted server though as I can join a 1.8 server without disconnecting. My friend today just build a new pc and got minecraft and has the exact same problem, my brother on his computer can join the realm and it works fine.