So, I've been always able to host a minecraft server. Whereas it is a Vanilla Server or a Bukkit Server.
Until 1.6.4, I've almost only hosted a Bukkit Server, where I've at least 30 plugins and have had at least 15 people at the same time. I allocate 3Gb of RAM to it. And when I play, I allocate another 3Gb to Minecraft itself. This while on a Skype call. I get no lag, can have high Video settings, with no problem at all, and almost no lag for the people that play on it.
Now, I've wanted to host a Vanilla server for a private Survival with a few friends. And I wanted to do so in either a 1.7 version or a 1.8 snapshot.
This has revealed impossible since I'll start crashing (my FPS - even on the lowest settings; sometimes the server). When I crash, everyone that is playing in the server start getting huge amounts of lag, since I'm the host.
I've tried with 1.7.2, 1.7.10, 14w28a and 14w28b. Always the same result, even though that in the snapshots I can last a bit longer before crashing. I don't know why this happens. I've tried running test runs (I play by myself in the server, with the lowest Video settings, and with no other programs running).
I would really appreciate any help.
Thanks!
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Incomplete without a crash report from ([minecraft/crash-reports/crash-<DATE>-client.txt|http://hopper.minecraft.net/help/finding-minecraft-data-folder]
). Please attach it so that we can diagnose your issue.

Ok, maybe I made myself misunderstand. When I said I would crash, I meant the FPS. I have them locked at 30, and when I "crash" they drop to 1 - 10 for a few minutes. And it's during that time that people lag. I don't actually crash. But, the server indeed does crash (kicking everyone out) and only letting us in after those few minutes pass. But the server kicking us (crashing) doesn't always happen.

If you could give me at least a bit of info on why this might be happening or what is causing it or if it will stop happening in later snapshots / 1.8 , it would be wonderful.

This is probably a technical support request, but attach the complete server.log after kicking the players.

Yeah, I just didn't know were to create the request :/
I'll attach 3 log files, that I think are the ones that correspond to the several crashes/kicking.

[16:03:50] [Server thread/WARN]: Can't keep up! Did the system time change, or is the server overloaded? Running 116227ms behind, skipping 2324 tick(s)
Either your computer is to weak to host a server or you didn't assign enough RAM to the server.
How do you start it ? What's the start script ?

I tried 2 ways. Double-clicking the vanilla server jar file. The other way was using a .bat file to start it. In that file I would allocate up to 3Gb of RAM.
Here's what I've on it:
@echo off
java -Xms3072M -Xmx3072M -jar minecraft_server.14w28a.jar gui
pause
But the thing is, I can host a 1.6.4 craftbukkit server with at least 30 plugins, play in it with video settings almost at the max and have at least 10 people in it at once, without any lag or these crash happening. But then, I can't host a vanilla 1.7.x server or 1.8 snapshot server, with only me in it and with the video settings at the lowest. This is what bothers/confuses me. I don't know if it is because there needs to be a lot of improvements to the 1.8 or something. I can't think of anything else :/