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Same bad experience here with socket.io.

I switched to Faye (http://faye.jcoglan.com/) an implementation of Bayeux protocol programmed by James Coglan. I'm using the node version of the library in my games for 4 years with excellents results.

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How are you scaling it? I'm using the Ruby version along with eventmachine but max concurrent connections was 1024.

sounds like you're hitting the ulimit for your server process, rather than a issue with Faye itself.

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