Server Lag w/ Logmein Hamachi Server

[HoboJimJoe]

I enjoy the pack Tekkit Legends a lot, and I thought I would try to make a server using the client LogMeIn Hamachi (Which I'm sure many people know about). After some problems, I finally got a server working along with all of the mods. Like the title implies, I've been having major server lag alone and with friends. Its most noticeable because our spawn was near a village, and the villagers teleported around about every 2 - 3 seconds. It is also important to note that I am playing through a laptop while I run the server on my desktop. The specs of my desktop (which isn't that good) are...

 

AMD Athlon(tm) || X4 645 Processor 3.10 GHz

4.00 GB Ram

64-bit Operating System

(I can provide more specs if needed)

 

Any suggestions? I am open to answering more questions if need be. Any information will be helpful. Thanks!