As I don't recall which image hosting solutions I have accounts for, I will upload the picture.
About the picture(ignoring the awkward Gimp drawings):
- This whole thing is 1 block high excluding the ground (dirt; 1 block high all underneath), but I haven't tested if it matters if in same chunk
- The red circles show where the blocks are turned into stone, if on a separate chunk of the main lava, seem to crash the server.
- The lines is where the boundary could be to cause the crash (I only tested with one of the lines as a boundary).
I can reproduce it on the server, but as I did it enough already to cause other players grief (causing downtime), I don't want to try again.
As long as the cobble (stone) generator is within one chunk, it worked without errors.
I hope this gets fixed, somehow... even if the issue is the fault of a mod that is not from the standard game.