Quote from Shawarma21
Another thing - I have watched some of Docm's video tutorial but.. How can I get the villagers to the upper part? And do the Iron Golems keep spawning when I am away too? If so, won't it clog up the server really bad eventually?
As long as any player is close enough to the chunks it is on to keep them loaded the farm will keep running, on an SMP server you are going to need to automate it so that the golems fall on pressure plates and activate the crushers themselves (or use a cycle timer), then have the water push the iron into a hopper that feeds it into a chest (or multiple chests connected by hoppers). That way you wont ever have enough entities spawned at once to lag the server even if it is running all the time.
The default distance to unload chunks is 10 chunks away but the game doesn't count the chunk your in so it is really more like between 10 and 11 chunks distance. The thing will keep running unless there is no player within the range of between 160 and 176 blocks of it, so it will probably lag the server when your away if you don't automate the killing process.