Are you running on hamachi? A home connection that is port forwarded? are you using the correct server and client versions?
Hey guys, I figured this out, and thought I'd share. The "Reached end of stream" messages are generated by the 1.4 client pinging your server. Just start up 1.4, go to multiplayer, then hit refresh a bunch of times and you'll see a "Reached end of stream" on your server console everytime you hit refresh. It's very irritating, but I don't see any signs of any actual harm to the server. Speculation time: I'm guessing 1.4 does a more intense connection to the server to get the version number, so it can put that cute X mark over it when its out of date, and is ending the connection in an unfriendly way.
Yeah I get that too non-stop. Doesn't seem to affect the server though. Usually I have around 40-50 people on the server at this time, right now 2 people. Updates should be backwards compatible :/ I have no idea why Mojang don't think of these things beforehand.
Its like their heart was in the right place, they made it so it wont even let you try to connect to an out of date server, but they must not have thought to test it against 1.3 servers to see what would happen. Its like even now, Mojang assumes everyone just updates on update day, ditching Bukkit and running Vanilla or something. All servers I know of just delay on upgrading until there's a Bukkit build that is stable enough, and all the critical plugins are working.
Its definitely NOT just players connecting on 1.4. I'm getting spammed on a small private server. No way they're all just people connecting on 1.4. (As in, 3 people)