Ever since the 1.7 update, and the introduction of the new world generation I have been getting lag spikes when loading chunks!
They happen frequently and are getting very annoying.
I have spent many hours trawling through the forums for an answer but to no success!
I can only assume that there is possibly a fault in the game, as these strange lag spikes only started to appear after the 1.7 update.
Over all performance of the game its self has dropped as well, as when I switch back to 1.6 I gain an extra 10 fps on average.
Activating redstone makes the fps drop by about 20 - 30 fps as well.
I'm stumped!
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Did you do a search for others containing the word "lag" or "fps"? I just included two I knew of (and am experiencing) as examples, not as an exhaustive list.
Also, can you force a crash (F3+C for 10 seconds) and attach the output (located in the %appdata%/.minecraft directory on Windows systems or ~/.minecraft/ in linux) while experiencing the issue?
Please note that there are already quite a few confirmed issues on this list relating to both general lag as well as FPS lag on 1.7 (such as MC-42373 and MC-42174, more can be found by searching for "lag"). Many have good details on how to replicate / find the issue. I would suggest looking to see if your issue is a duplicate of one or more of those.