From server.properties:
# Tells the server to load a specific number of chunks in a radius around each player
# Lower settings will decrease your RAM usage
view-distance=7
Increasing view distance will cause more lag, atm it'll load 225 chunks around a player, if I set it to 10, it'll load 441 chunks, so it'll require almost twice as many server resources pr. player.
Anyway I have tried setting it to 10 so you can try and see if anything has changed. It has been 7 ever since we changed to Multiplay (the option wasn't even editable for a long time if I remember correctly).