ID:1011624
 
(See the best response by A.T.H.K.)
Long story short. Reinstalled VPS, went about installing BYOND again as before. Went to host same game and version as before. Now all attempts to join that game either result in being unable to connect and recieving "Dream Daemon killed connection" or being able to get about halfway through character creation before the error occurs.

OS: Debian 6 (64 bit) (ia32-libs installed as per Nadrew's advice)
BYOND Versions: 494, 495, 496 (Tested all 3)
Compiler Versions: 495, 496, 497 (Compiled on Windows)
Client Versions: 494, 495, 496, 497

Any thoughts?
Best response
Problem still persists but your information was helpful none the less. :)