Chunk Issue

[kalereborn]

Title: Chunk Issue

Version: 3.0.3/3.0.4

OS: Windows 7 32bit SP1

Java Version: Latest Java - Updated it earlier this month

Description of Problem:

Getting this issue. No chunks loading at all. Sometimes falling forever through the world and then connection reset error. - Note this server is hosted on a friends PC and thrown through Hamachi.

Connected to friends server which is hosted by Multiplay (Note server lag is due to server using only 1gb of RAM) - No lag at all, chunks are loaded perfectly fine. No falling through the world and no chat lag at all.

I've looked onto other forums across the MC forums and nobody has addressed this issue, does anyone here have a suggestion or a way to fix this?

Error Messages:

Error Log:

[kalereborn]

Also, unsure if this was the right forum topic to post under.