Found a lag producing scenario with chopping firewood.
1) get an axe (hatche)
2) Go to a large tree and select chop firewood
3) Spam the F key with the chop firewood option.
Results:
1) Both myself and the player who did the tree cutting froze for about 45 seconds when we hit tab to pickup the logs and sticks
2) we had over 100 logs and sticks on the ground
3) even a distance away from the tree (several hundred meters) we got the lag for a period of about 5 minutes or so... then it must have been cleaned up
4) neither of us saw the tree fall, which led to the spamming.