Ahh, thanks! Passengers makes more sense anyway.
I see... I am not sure what to think on that one. Thank you Herr Dinnerbone.
Confirmed on 1.4.5, Vista 32bit SP3, Java 1.7.0_09 32-bit.
Thanks Sopa, your fix worked, minecraft is running great again!! Reposting link here:
http://www.minecraftforum.net/topic/892045-sound-lagstutter-fix/
This is the stage file which creates lag when flying and walking around inside the area surrounded by running water.
Installing the Minecraft Java Version 1.19 update appears to have resolved this issue.