server having memory spikes

My locally hosted server will have the memory spike to 100% and kicks me, but not others on the server

---- Minecraft Crash Report ----
// I blame Dinnerbone.

Time: 7/3/13 6:25 PM
Description: Updating screen events

java.lang.OutOfMemoryError: unable to create new native thread
	at java.lang.Thread.start0(Native Method)
	at java.lang.Thread.start(Unknown Source)
	at ave.A_(SourceFile:90)
	at avv.a(SourceFile:96)
	at atn.a(SourceFile:549)
	at bli.a(SourceFile:259)
	at avv.a(SourceFile:71)
	at bli.a(SourceFile:503)
	at avv.d(SourceFile:125)
	at avv.m(SourceFile:109)
	at atn.k(SourceFile:1157)
	at atn.S(SourceFile:662)
	at atn.d(SourceFile:618)
	at net.minecraft.client.main.Main.main(SourceFile:101)


A detailed walkthrough of the error, its code path and all known details is as follows:
---------------------------------------------------------------------------------------

-- Head --
Stacktrace:
	at java.lang.Thread.start0(Native Method)
	at java.lang.Thread.start(Unknown Source)
	at ave.A_(SourceFile:90)
	at avv.a(SourceFile:96)
	at atn.a(SourceFile:549)
	at bli.a(SourceFile:259)
	at avv.a(SourceFile:71)
	at bli.a(SourceFile:503)
	at avv.d(SourceFile:125)
	at avv.m(SourceFile:109)

-- Affected screen --
Details:
	Screen name: ave
Stacktrace:
	at atn.k(SourceFile:1157)
	at atn.S(SourceFile:662)
	at atn.d(SourceFile:618)
	at net.minecraft.client.main.Main.main(SourceFile:101)

-- System Details --
Details:
	Minecraft Version: 1.6.1
	Operating System: Windows 7 (x86) version 6.1
	Java Version: 1.7.0_25, Oracle Corporation
	Java VM Version: Java HotSpot(TM) Client VM (mixed mode), Oracle Corporation
	Memory: 104882680 bytes (100 MB) / 161165312 bytes (153 MB) up to 1037959168 bytes (989 MB)
	JVM Flags: 1 total; -Xmx1G
	AABB Pool Size: 0 (0 bytes; 0 MB) allocated, 0 (0 bytes; 0 MB) used
	Suspicious classes: No suspicious classes found.
	IntCache: cache: 0, tcache: 0, allocated: 3, tallocated: 63
	Launched Version: 1.6.1
	LWJGL: 2.9.0
	OpenGL: Intel(R) HD Graphics 4000 GL version 3.3.0 - Build 8.15.10.2653, Intel
	Is Modded: Probably not. Jar signature remains and client brand is untouched.
	Type: Client (map_client.txt)
	Resource Pack: Default
	Profiler Position: N/A (disabled)
	Vec3 Pool Size: ~~ERROR~~ NullPointerException: null