This suddenly happened to me a few weeks ago after I completely removed Java and re-installed it because I was experienceing Java Heap Space errors. I can't seem to solve this yet, but solutions on other threads involve configuuring your FireWall and giving Java permission or updating Java. Nothing has worked for me, this is a minecraft.jar flaw that has not been fixed permenantly yet.
I Have the same problem when someone is trying to join with the new update it says outdated server then everyone lost connection and it said reached end of stream in console wtf please help
Please fill this out and post it back here: http://forums.bukkit.org/threads/you-need-help-we-need-this-information-to-help-you.2018/ @Techcuron and @krussidull please make your own thread.