You might laugh at this, but idiot me just realized something... Will the MC server crash if I had it running on a old USB 2.0 flash drive?
Minecraft is programmed in one single thread, regrettably. Not that it will have a solution for the current problem but here is some background information on minecraft and it's implementation that makes for a good read. Minecraft does not need more than one Core (granted if all the other stuff that is happening on your system can use different cores or simultaneous threads that improves matters, but not to a huge extent).
From one Systems lecture I have heard that a overspec'ed network card can be problematic with a lower-end CPU since the CPU cannot deal with the sheer number of hardware interrupts the high-bandwith-transmission provides but I'm not quite sure that that may be the reason for your problems. But I'm just arguing for the Gigabit to be the reason, I have no real evidence or experience for/with high bandwith network and low end CPUs.
To the crash/USB2.0 issue: What exactly do you have on USB? The server.jar (or whatever it's called) and the savegame? There would be no direct reason for that but there could be a more obscure reason. But if you have your server on a thumbdrive: move it to internal, sure, why not? I would try pregenerating the level (via mod or savegame) to see if that was the problem.
I have the latest version of java installed for 32 bit, which the OS is 32-Bit because of the CPU
I am running version minecraft server 1.8.8
could you upload the full crash report?
No crash after tinkering with the settings. I set the tick time to 120000 and view distance to 5, runs much better
check OP
There anyway I can compress the data stream for when I have people outside my network? seeing I only have a 2mbps upload?
Jupp. If you know a little Linux you could get a virtual Server. There are some that offer 4 Gigs of RAM for under 10$ a month, providing you with all the RAM you need.