Major issue regarding teleporting items and the chunk loader - result is client coming to a complete standstill

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What steps will reproduce the problem?

1. Create cobble generators with a block breaker and send the output to 
frequency 1 in SMP outside of the persistent area around 0,0. This is 144 
blocks (or so) all directions from 0,0.
2. Have a receiving tele pipe on frequency 1 nearby. I have this fed into 
recyclers.
3. Teleport the scrap somewhere else that is also not in the persistent area.
4. Put chunk loader blocks in the appropriate areas so all of this stuff keeps 
working when you leave the area.

What is the expected output? What do you see instead?

I expected the system to work flawlessly.

What ended up happening is things only half work. I have 14 or so cobble 
generators each producing a block of cobble every 2 seconds so there is a lot 
of cobble flowing through this setup.

What I'm experiencing is something similar to what happens when there is an 
overflow and so many items end up falling on the floor that they lag the game 
to a halt. When I approach the cobble generators my client literally comes to a 
halt. However, if I have my friend teleport me to him at his base the game runs 
just fine.

I can't get close enough to figure out what's going on, but I can say that 
something is seriously wrong.

What version are you using?
rev 29

Please provide your Console/ModLoader output below.
No errors.

Please provide any additional information below.
I pretty much covered it above. I'll provide any additional info needed.

Please provide any screenshots you feel would help demonstrate this
issue/feature.

Imagine the client completely frozen.

I can provide a mod list and the ip of my server if anyone feels like 
investigating further.

Original issue reported on code.google.com by ZachsTho...@gmail.com on 8 Dec 2011 at 6:05

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This can be closed / deleted. I found an overflow.

Original comment by ZachsTho...@gmail.com on 8 Dec 2011 at 8:53

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Yes it will overflow because your machines are not processing the cobble stone. 
I have run into the same problem, it seems the chunk loaders are not working 
correctly with recyclers. They will only process my materials when i am around, 
if i log out they will overflow and be full when i get back. This is a simple 1 
cobble every few seconds, nothing that would overload the recyclers.

Original comment by TravisAG...@gmail.com on 13 Dec 2011 at 12:18