These symptoms usually indicate that there is packet loss somewhere between you and Cryptic's servers. When I was having this problem the only recourse was to wait for the ISP's to sort it out themselves. I don't know if this link is helpful for you: http://www.internetpulse.net/ (Cryptic's servers are located on Cogent.)
Ditto. Also Founder's Pack purchaser. The most frustrating thing about this is that you are unable to access the customer support page if you are banned. Thus there is no open line of communication available.
This. Permaban for a first offense that doesn't give economic advantage or even any quest advantage (still need the other items from the dailies to progress) is over the top.