Go to speedtest.net and post the image here, updating your browser has NOTHING to do with your upload speed, and
I have a max 2 gigs of ram and I am not using Hamichi. But what is this OS thing?
makes me a little leery of information provided so far/ Quite frankly given your inability to answer the very straightforward questions asked here, I am wondering if you honestly have the skill set needed to run a server
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zombiecraft.serverbeer.com - Permissions enabled home server, focusing on big builds
system 64-bit operating (yes, the starter is set for 64 bit)
Okay so Celeron is not a very powerful CPU and single core looks like , this could be part of your problem a bottleneck none the less, next the RAM , you said your running windows 7, so windows needs 2Gig of RAM , and your allocating another 2Gig of RAM to the Server and your playing off the same computer so minecraft needs a 1Gig so my question for you is does your computer have more then 5Gigs of RAM in it? If no then reason for the lag is solved!
playing and hosting in the same computer gives a lot of stress to the computer.
fyi, my server is running on AMD 64 x2 1.80 Ghz, 2Gb Ram, 32bit Vista. I use .jar and allocate 1gb of ram for minecraft. My internet speed 10Mbit up / 10Mbit down, and the server can handle 5 people without lag. btw, it was extreamly laggy when I was using .exe file.
I own my own server, and there is no lag at all for just ME, my friends get a lag butt-rape.
Your not getting lag most likly your connecting to from your internal network or same machine , outside = lag.
Goto Speedtest.net look at your upload speed (upload is the important one for a server), then goto http://canihostaminecraftserver.com/ find out how many max people you can host and subtract 2 from that number to get the optimum host number for least lag