In my WPF 4.0 application, I have a UDP listener implemented as shown below. On my Windows 7 PC, I\'m running both server and client on local         
        
To avoid the thread block issue, try this approach that uses the newer IO Completion port receive method:
private void OnReceive(object sender, SocketAsyncEventArgs e)
{
TOP:
    if (e != null)
    {
        int length = e.BytesTransferred;
        if (length > 0)
        {
            FireBytesReceivedFrom(Datagram, length, (IPEndPoint)e.RemoteEndPoint);
        }
        e.Dispose(); // could possibly reuse the args?
    }
    Socket s = Socket;
    if (s != null && RemoteEndPoint != null)
    {
        e = new SocketAsyncEventArgs();
        try
        {
            e.RemoteEndPoint = RemoteEndPoint;
            e.SetBuffer(Datagram, 0, Datagram.Length); // don't allocate a new buffer every time
            e.Completed += OnReceive;
            // this uses the fast IO completion port stuff made available in .NET 3.5; it's supposedly better than the socket selector or the old Begin/End methods
            if (!s.ReceiveFromAsync(e)) // returns synchronously if data is already there
                goto TOP; // using GOTO to avoid overflowing the stack
        }
        catch (ObjectDisposedException)
        {
            // this is expected after a disconnect
            e.Dispose();
            Logger.Info("UDP Client Receive was disconnected.");
        }
        catch (Exception ex)
        {
            Logger.Error("Unexpected UDP Client Receive disconnect.", ex);
        }
    }
}