Server becomes unresponsive after player login

I am running my Minecraft server, and a friend gets on and everything is frozen for him. 2 seconds later he is kicked, and can't get back on. We tried again, and I got on. Was doing fine and then we both got kicked. I have a disconnect error. Internal Exception: io.netty.handler.timeout.ReadTimeoutException and here is the server console after we both get kicked

[18:42:44 INFO]: Starting minecraft server version 14w03b
[18:42:44 INFO]: Loading properties
[18:42:44 INFO]: Default game type: SURVIVAL
[18:42:44 INFO]: Generating keypair
[18:42:44 INFO]: Starting Minecraft server on 192.168.2.10:25565
[18:42:44 INFO]: Preparing level "Normal World"
[18:42:44 INFO]: Preparing start region for level 0
[18:42:45 INFO]: Preparing spawn area: 0%
[18:42:46 INFO]: Preparing spawn area: 73%
[18:42:47 INFO]: Done (2.657s)! For help, type "help" or "?"
[18:47:09 INFO]: UUID of player ObsidianMinor is ba7b33e1a4e149a394feaa894c52d071
[18:47:09 INFO]: ObsidianMinor[/192.168.2.10:55304] logged in with entity id 1200 at (-122.53346217859138, 65.0, 249.87257538849914)
[18:47:09 INFO]: ObsidianMinor joined the game
[18:47:32 INFO]: UUID of player CallMeGI is ef63e4007ad94feab4645631d9535346
[18:47:32 INFO]: CallMeGI[/70.112.62.154:57965] logged in with entity id 3710 at (94.5122214212057, 53.0, 0.36600269876827796)
[18:47:32 INFO]: CallMeGI joined the game

Also the input doesn't work, and I have to go into task manager and force it off.