I've experienced something like this in the past with the same error number and personally believe it is some kind auto-security that kicks on SE's end in response to bad/dropped packets. Sometimes it clears up after a few hours, but one time I had to forcefully get myself a new IP assigned before I could actually log in again with a specific, affected character. Doing that basically required unplugging my modem from both the cable, power, and battery overnight in the general hopes my ISP would reassign that "blocked" IP to someone else. This isn't something a quick release/renew would accomplish, either, as they're likely to give you the same IP and sometimes that'll last for weeks at a time.
But in the end, expect no help from SE on this one. And while I used the word banned, your character is still fine, or at least should be, since it sounds like you can still access your account generally and not get the LM-17 error and such. I can't say if the above is the only fix, but if you can't seem to get anything else to work, do try to get a new IP or maybe even try to log in from somewhere else, move the character, and then try again from the affected machine (and the same area) to see if it persists.
____________________________
Violence good. Sexy bad. Yay America.