There are 30+ players on and the server seems to be dying. It appears to be dropping peoples packets a couple times a min. From what I could tell (which could easily be way wrong) everything appeared to be fine and then suddenly everyone would get a large lag spike for a half second to a full second.

I don't think this has to do with the number of players so much as an obscure bug that's under investigation. Please make the formal bug reports when you see this so that the time and stats are logged. Thanks!

Ya the reference to the numbers was more to point out that it shouldn't be because of them.