It may be just this mod, or this mod in combination with the 90 other mods I'm using, but when connecting the first time the server goes up, everything is fine. Upon disconnect/reconnect OR a second player attempts to connect, that person will receive the desync loop until their client gives up. It may be in combination with WaiTex HD or Alien Biomes/Water Fix. Not sure.
I like the mod, but obviously I cannot use it in its current state.