MechWarrior 2: Resource Forum

As of late september of 2012 the mercnet server is running without any issues

I had the same problem as you but I've been playing Mercnet all week with my brother using the mech2.org server. I don't even use MechVM, instead I mount the .cue in dosbox using the imgmount command.
It works like a charm if you have the .bin and .cue named the same and mount the game directory ...

If you're still having problems, make sure your cd .cue and .bin are easily accessible, like in your c:\ drive.
here's an example command of loading the mercs folder. I have mw2 mercs in the folder c:\MERCSCD.

1. mount c c:\MERCSCD
then enter the c drive. very important that you do this first, or ...