diff --git a/Streaming.cpp b/Streaming.cpp
index 07f1a72a..c1bc5802 100644
--- a/Streaming.cpp
+++ b/Streaming.cpp
@@ -19,7 +19,7 @@ namespace stream
 {
 	Stream::Stream (boost::asio::io_service& service, StreamingDestination * local, 
 		const i2p::data::LeaseSet& remote): m_Service (service), m_SendStreamID (0), 
-		m_SequenceNumber (0), m_LastReceivedSequenceNumber (0), m_IsOpen (false),  
+		m_SequenceNumber (0), m_LastReceivedSequenceNumber (-1), m_IsOpen (false),  
 		m_IsOutgoing(true), m_LeaseSetUpdated (true), m_LocalDestination (local), 
 		m_RemoteLeaseSet (&remote), m_ReceiveTimer (m_Service)
 	{
@@ -28,7 +28,7 @@ namespace stream
 	}	
 
 	Stream::Stream (boost::asio::io_service& service, StreamingDestination * local):
-		m_Service (service), m_SendStreamID (0), m_SequenceNumber (0), m_LastReceivedSequenceNumber (0), 
+		m_Service (service), m_SendStreamID (0), m_SequenceNumber (0), m_LastReceivedSequenceNumber (-1), 
 		m_IsOpen (true), m_IsOutgoing(true), m_LeaseSetUpdated (true), m_LocalDestination (local),
 		m_RemoteLeaseSet (nullptr), m_ReceiveTimer (m_Service)
 	{
@@ -53,7 +53,7 @@ namespace stream
 		if (!m_SendStreamID) 
 			m_SendStreamID = packet->GetReceiveStreamID (); 	
 
-		uint32_t receivedSeqn = packet->GetSeqn ();
+		int32_t receivedSeqn = packet->GetSeqn ();
 		if (!receivedSeqn && !packet->IsSYN ())
 		{
 			// plain ack
@@ -63,7 +63,7 @@ namespace stream
 		}
 
 		LogPrint ("Received seqn=", receivedSeqn); 
-		if (!receivedSeqn || receivedSeqn == m_LastReceivedSequenceNumber + 1)
+		if (receivedSeqn == m_LastReceivedSequenceNumber + 1)
 		{			
 			// we have received next in sequence message
 			ProcessPacket (packet);
@@ -71,7 +71,7 @@ namespace stream
 			// we should also try stored messages if any
 			for (auto it = m_SavedPackets.begin (); it != m_SavedPackets.end ();)
 			{			
-				if ((*it)->GetSeqn () == m_LastReceivedSequenceNumber + 1)
+				if ((*it)->GetSeqn () == (uint32_t)(m_LastReceivedSequenceNumber + 1))
 				{
 					Packet * savedPacket = *it;
 					m_SavedPackets.erase (it++);
@@ -123,26 +123,24 @@ namespace stream
 			LogPrint ("Synchronize");
 		}	
 
+		if (flags & PACKET_FLAG_DELAY_REQUESTED)
+		{
+			optionData += 2;
+		}	
+		
 		if (flags & PACKET_FLAG_FROM_INCLUDED)
 		{
-			LogPrint ("From identity");
-			optionData += m_RemoteIdentity.FromBuffer (optionData, packet->GetOptionSize ());
-			if (m_RemoteLeaseSet)
-			{
-				if (m_RemoteIdentity.Hash () != m_RemoteLeaseSet->GetIdentHash ()) // check recieved identity
-				{
-					LogPrint ("Unexpected identity ",  m_RemoteIdentity.Hash ().ToBase64 (), " ", m_RemoteLeaseSet->GetIdentHash ().ToBase64 (), " expected");
-					m_RemoteLeaseSet = nullptr; 
-				}
-			}
-			else
+			optionData += m_RemoteIdentity.FromBuffer (optionData, i2p::data::DEFAULT_IDENTITY_SIZE);
+			LogPrint ("From identity ", m_RemoteIdentity.Hash ().ToBase64 ());		
+			if (!m_RemoteLeaseSet)
 				LogPrint ("Incoming stream from ", m_RemoteIdentity.Hash ().ToBase64 ());
-			optionData += sizeof (i2p::data::Identity);
+			optionData += i2p::data::DEFAULT_IDENTITY_SIZE;
 		}	
 
 		if (flags & PACKET_FLAG_MAX_PACKET_SIZE_INCLUDED)
 		{
-			LogPrint ("Max packet size");
+			uint16_t maxPacketSize = htobe16 (*(uint16_t *)optionData);
+			LogPrint ("Max packet size ", maxPacketSize);
 			optionData += 2;
 		}	
 		
@@ -633,7 +631,7 @@ namespace stream
 			uncompressed->len = decompressor.MaxRetrievable ();
 			if (uncompressed->len > MAX_PACKET_SIZE)
 			{
-				LogPrint ("Recieved packet size exceeds mac packet size");
+				LogPrint ("Received packet size ", uncompressed->len,  " exceeds max packet size");
 				uncompressed->len = MAX_PACKET_SIZE;
 			}	
 			decompressor.Get (uncompressed->buf, uncompressed->len);
diff --git a/Streaming.h b/Streaming.h
index c76f508a..e7b44e43 100644
--- a/Streaming.h
+++ b/Streaming.h
@@ -34,7 +34,7 @@ namespace stream
 	const uint16_t PACKET_FLAG_NO_ACK = 0x0400;
 
 	const size_t STREAMING_MTU = 1730;
-	const size_t MAX_PACKET_SIZE = 1754;
+	const size_t MAX_PACKET_SIZE = 4096;
 
 	struct Packet
 	{
@@ -111,7 +111,8 @@ namespace stream
 		private:
 
 			boost::asio::io_service& m_Service;
-			uint32_t m_SendStreamID, m_RecvStreamID, m_SequenceNumber, m_LastReceivedSequenceNumber;
+			uint32_t m_SendStreamID, m_RecvStreamID, m_SequenceNumber;
+			int32_t m_LastReceivedSequenceNumber;
 			bool m_IsOpen, m_IsOutgoing, m_LeaseSetUpdated;
 			StreamingDestination * m_LocalDestination;
 			i2p::data::Identity m_RemoteIdentity;