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I run a MechanicalTitan server. Check it out here.
http://www.minecraftforum.net/forums/servers/pc-servers/survival-servers/2207956-mechanical-titan-_-crapnapolis-_-small
I believe you can turn retro gen on but be prepared for lag for a short time after reboot. The dev team recommended a world reset for this update though as far as I know.
That's something that Iguana tweaks does to add XP leveling to tinkers tools made before it was added. If you are just now updating from before Iguana Tweaks was added, it would be recommended to reset your world either way.
They actually have two levels. The mining level and the skill level. Both gain xp separately.
Better to get silky now than when you're master level on it
When you first craft a tool it will only mine up to the level of the head(I.e.copper will only mine copper or lower). As you use it, it will gain xp and once it levels up it will mine the next level of ores.
Zombie awareness was added. If you're less than full health the zombies can track you like bloodhounds. Also, they are attracted to light sources. Stay at full health try to spot them further away. You can always drop the difficulty down as well.
With all the technology, the end just isn't a challenge. That mod should help fix that and give server owners materials to make it more of a challenge.