Last night @ 10-11 pm pt, I entered the mystery cave (dalghur oasis)the screen froze after about ten steps into cave. 45 secs later the game became active again and of course my barb was dead. All last night I had red and yellow latency bar about 50% of the time (this is highly unusual) The auction house was also glitchy, very slow to list items. Also after salvaging items they never appeared in my pack, but moments later they appeared on the ground in front of the smith act 2. Another thing I noticed was my passives were not working (or were behind the action and appeared not to work)
suddenly at 11 pm everything worked great! Heavy traffic? Maybe your in need of some server upgrade?
The good news was I got keys 3 out of 4 trys in mp3 and one one drop got a Stone of Jordan with a key. (it's cool to get two beams of light in one drop)
I love this game, I just wish your connection was solid like it was before patch 1.06