Minecraft Issue

So I just built a new pc a couple weeks ago.  CPU:FX-6300  GPU:XFX-7870 with 8GB 1600 ddr3

I have been running a minecraft server and playing on it.  My old PC is the only other player on the server.  

When I set the render distance to far on the PC with the server, the chunks take forever to load.  

 

I guess what I'm trying to figure out if there is some setting I need to change (other than lower render distance) that  is causing the lag. 

My old PC (athlon 635/gtx460/8GB) seemed to run a server and game better than new setup.

I'm most likely missing something obvious... Input is much appreciated.

What kind of hard drive do you have on the pc with the server ?

It is a 5400rpm WD Cav. Blue 500gb. Actually the same HD from my old machine but reformatted for fresh install.

So both servers that you ran were on the same drive just at different times ?

Correct. I originally ran a server while playing on it with that WD drive and old PC.  I now run it on that same drive (it was wiped clean with a fresh install of Windows 7) but with my new PC.

A similar question. I found a tutorial that shows you how to create a .bat file that runs a command prompt which tells java to run the server with a preallocated amount of RAM.  I guess the default is minimal RAM.  Is my understanding correct that I could create a second file which runs the minecraft.exe file with a preallocated amount of RAM as well?

Would that help my issue at all?

If you wana play minecraft with more ram use magic launcher, it will also let you install mods easier. Not sure if it will help your server issues though