i have a small arena setup
and when i join the map it works for like 15-20 secs and then a MAJOR lag strikes the world its in and no one can do anything til the close their client

There are a few factors that may be influencing this new problem. One of these could be the new chest fake beacons, try disabling that and let me know. I have already cleared up a bunch of problems with that for the next version. Another thing could be your compiled version. Are you using v1.2.8 on Java 1.6? That will break, it was compiled for Java 1.5 by mistake, this will be fixed in the next version. Also, please try and post a stacktrace (full error output from the console (you can find it in server.txt)) because this will make it easy to find any problems internally. (If there are any errors showing in the output)

disabled beacons still not working, using 1.2.8 with java 1.7.0_17
the log shows no errors for your plugin i can find but here you go
http://pastebin.ca/2332926
anyway hope to hear from you soon ^.^

This is weird, I will have to put some serious work and thought into it. As of now, I don't really know much, but let me get into it deeper, and I will fix it.

Fixed as of 1.2.9.