Please let Azymn know about your concerns
http://forums.mt-wudan.com). I have seen other people make similar complaints, but you might be invisible even though YOU can see yourself. One time I tried cloking but stayed visible to myself. But then someone spawned next to me and acted like he couldn't see me. I sniped him from point-blank range. Go on a RPG server and ask people if they can see you when you cloak.