I'm guessing that you're either sending information too quickly, or are not reading it fast enough. When I googled it it said something about buffers filling up.
http://www.google.co.uk/search?sclient=psy&hl=en&safe=off&site=&source=hp&q=error+10035&btnG=Search
My first guess is that you're sending a really big message. I don't know what the size limit is.
My second guess is that you're sending messages and the other end isn't reading all of them. To be sure you are clearing out the message buffer, in the part of your loop where it processes messages, try putting something like:
while net get message()
`process message
endwhile
I gather messages sent by the "system" ordinarily - like which players join and leave, are handled differently. I'm not sure what happens if you don't process stuff by calling net player joined(), net player left() periodically to clear out these messages. Maybe that could cause a buffer to be filled and generate an error too.
edit: You fixed it. Congrats!
I find it's a good idea to keep some simple debug info like a count of how many messages have been recieved for spotting shennanigans like this!