I can't be absolutely sure without more testing, but it appears that I just fixed the server. 99% sure. Me and Bob and Jeremy have been playing for the last hour-and-a-half and it has not had any of that nasty lag-hiccuping that has plagued us for so long. In fact, the only lag we experienced was the sort you would expect when KaBob summoned towers and towers of pigs riding boats riding pigs and explosions and whatnot :D

So…

Hurray! So long as bob stops crashing the server on purpose ;_:

*Disclaimer - like any server, there still is some lag, and some small bursts of latency when something intensive like chunk loading/playerjoining/explosions happens. The only thing that can fix that is a better server. Its still a bajillion times better than before :P

Edit: Nope. It *is* better than before, but still experiencing some lag. It is still better than it used to be though.