We have six halogen lights set in to the (plasterboard) ceiling of our bathroom using IP44 rated sockets (the ones for bathrooms).
When the rooms steams up a bit, one or other of the transformers (there's one for each gang) seems to cut out for a bit. At least, it only seems to do so when the room steams up. We have an extractor fan, so it doesn't get that steamy though.
The transformers are pretty meaty by the looks of them though, so I don't think they're overheating. Could it be something else?