I have a test server running 6.5 SP1 (Overlay) + AFP112 update. When the
server is DOWNed, any Macs (all running OSX 10.3) report that they have been
disconnected and then hang. Eventually the dark grey box appears in the
middle of the screen saying that the system has locked up and to press the
power key for several seconds......

This problem does not occur if I just type AFPSTOP on the server console.
When this is done, the Macs say they have been disconnected, but carry on
working after clicking on OK.

If I just power off the server the Macs cope fine, eventually coming up with
the option to disconnect from the server.

So the problem only happens when I type DOWN.

Has anyone else experienced this?

(Please note, the problem occurred with 6.5SP1 without AFP112).