Insane Non stop block and server lag!

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I do have the exact same problem, but with a newly created world.
Sysspecs are:
ESXi virtualized environment. Physical specs: 8x Cores (2x Xeon E5602), 24Gb RAM.
Virtual server for MC: 4x cores, 12Gb RAM, Ubuntu Linux x64 (Java heap size 8G max, 4G min), running MC from ramdisk. Pack is Direwolf20.
Current online count is eight players, but I already have 300+ ms in a tick rate delay (using /TPS command). Using ForgeTools "/mobs d" I see - I have 5000+ passive mobs spawned, but I have no idea is it the case, or something else.
"top" command give me approximately "1.20" state, 80% CPU idle (0 - 0.5% wait), 15-20% of RAM free, no swapping.
"java" process using about 130% of CPU, about 15% of memory.
So I just can't think of anything trying to find a source of lag... Could you advise me something pretty please?
 
130% of your cpu is impressive. I've never been able to go over 100% myself.

Anyway.

Kill the mobs. Try to keep your entity count bellow 1000. (below 500 truely)
 
130% means it's using one whole core plus a little extra from another (that's how linux represents actual cpu usage =)
I would gladly kill all the mobs, but how can I find them? It's a newly created world, and I have no idea where to search...
 
Oh, that's a world mob count, not area. Sorry.

Can you follow the first two links in my signature please?
 
Ok, just in case I reinstalled java, and populated server mc dir with freshly unzipped ftbserver.jar and mods.

Here's server.log file: http://pastebin.com/VKE0PsAw - I cutted the log because of "Can't keep up! Did the system time change, or is the server overloaded?" is all that follows there.
 
are you sending any java flags during the startup of the server (ea in the file you launch)?
 
I definitely do... Here they are:
java -Xmx8192M -Xms4096M -XX:+UseConcMarkSweepGC -XX:+CMSIncrementalPacing -XX:ParallelGCThreads=4 -XX:+AggressiveOpts -jar ftbserver.jar
 
Might be worth a shot:
As stated by CPW on twitter to me:
Code:
NO. Set (x)ms == (x)mx, for servers, ALWAYS.
This will reduce lag by a big amount, since the server won't be trying to clear the ram it uses above the xms value
 
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Ok, it seems to be helpful a little, at least now I have acceptable 20-40ms delay, but I have to do restarts on a regular basis (it seems to me - mobs are spawning on a newly created chunks, and they dont bother about despawning themselves).
Thanks anyway, guys! I can live with that!