Random Disconnects of All users

I'm running the currently posted R0.1 for 1.2.3 and I'm running into random server disconnects. only feed back i get on console is Read timed out. And client side is Socket timed out. This can be very frustrating as i have about 20+ regular users. I lowered my cap to 10 people and my bandwidth should be able to handle it. Also it randomly disconnects all users except myself when I'm connected to the internal IP address of the server. can i host a minecraft server says i can support about 20 users with my current bandwith/ram settings but for some strange reason it acts like its not enough. Can anyone help?!​