We could see each other standing in place where we spawned.
We later tested it a bit more - I was shooting rockets at the place he was on his screen, then at the place where he was on my screen (he took the 25t, I was in the M2KC): in the first case, the rockets did no damage even though they were on target in his sim; in the second case, I managed to destroy him even though he was a few km away form the point I was shooting at.
Later, he crashed into me in-flight, killing both of us, even though he was still on the ground on my screen.