I can confirm the same issue for me and one other person on two separate servers from both pre- and post-43a. We're both running 64bit Win7 and the servers were running on my computer.
At a speculative glance, it appears to be related to client-side block placement as I can move around in areas that are already built before I start playing without issue. Placing blocks appears to cause the error invariably within a second as does being in an area where chunks haven't yet been generated. Using the server to place blocks (/setblock) does not appear to cause a disconnect while I am in the server. The server holds up fine and does not report any error.
I edited my post to confirm what I meant, sorry.
To reiterate, generating the world appears to disconnect the client, as does the client placing blocks in an already fully generated area.