Some analysis is due before you start considering fixes to server lag.
1. Is your CPU usage excessive?
If so - then yes, you should consider reducing loaded chunks.
2. Is your Ram usage high?
Im on a 6GB ram machine, with FTB Infinity Evolved - and using only 2GB of ram,
If I get lag, I know it isnt ram related as I still have 4 GB left. If however you are hitting the upper limit of Ram, then you may have too many mods loaded or too many dimensions loaded.
3. Is your Server Lag happening when exploring new regions?
This is lag associated with Generating of Chunks for the first time. Consider using a chunk-pregen mod to do the heavy lifting for you before people log in.
Eg: Generate 100 x 100 chunks emanating from spawn in each direction. Once this is done - players entering those chunks will not cause generation events to fire.
4. Is your Server lagging when entering new dimensions for first time?
This is not one that can be solved easily. There will always be some lag associated with entering a dimension for the first time. Its the same sort of issue as chunk generation.
If the dimension already exists, you could chunk-pregen to mitigate the issue, but most mods that do dimensions such as mystcraft, won't create the dimension, until you are entering it. Preventing any meaningful pre-gen opportunities.
5. Is your Server lagging when entering an already existing dimension?
While some people may disagree with this - I find that using a chunk loader around the portal in the dimension you are travelling to, reduces the lag associated with loading the dimension back into memory.
Eg: When you exit a dimension and no one else is in it - the server backs the dimension up to the harddrive, the dimension then no longer exists.
When you enter the dimension, it loads the backup back into memory, and then de-serializes it and turns it into a meaningful dimension.
The whole loading from hdd and saving to hdd is an I/O operation, which in programming circles is typically the slowest part of any transaction.
If you were to use a chunk loader to keep the dimension alive in memory, you would be able to bypass the lag associated with loading the dimension from the hdd.
Note - Only consider this option if you have sufficient ram.
Each dimension consumes more memory and cpu cycles .
Note: When it comes to pregenerating chunks - I recommend:
http://www.minecraftforum.net/forum...ods/2223032-chunkgen-preload-chunks-on-demand
I used to use the Admin-Tool box, but found it would exception out after a relatively small amount of chunks.
I am currently running this right now with
/chunkgen 0 0 256 256 0
To generate a 256 x 256 square around spawn.
Note: thats 256 chunks x 256 chunks - each chunk is 16x16 blocks in squared area.