Wasn't there something about older drivers not working on newer systems because of how they handled timing? I can't remember what this was, but it came up in a thread a while back. One of the posix functions being changed. If we're absolutely certain that this isn't the mudlib, that's the place to look. Given that MudOS is no longer actively developed and that this may be an older version, (I'm not too clear on MudOS versioning) this could be it.
Perhaps, make something that gives a message on every heartbeat, no matter what. Put it somewhere where it can not be affected by possibly erroneous mudlib code. See if it gives the message every heartbeat. If your mudlib is handling calling heartbeat() and the driver isn't, which I don't believe is possible on anything that's not DGD, look there.
I'm not really an lpc expert, so...