i changed the maxentities in the server config and this seems to work... however people on my server still experience some serious lag
That 'serious lag' is because your server is a home-hosted cable server. Those are always a bad idea. Cable (slow) coupled with your personal PC (slow) especially WHILE you're using it (even slower) is a sure-fire recipe for 300+ pings, no question.
lol dnt say about laggin on a computer with this game, you'd have to be like on a pentium 1 for that to happen. i know i can host a battlefield 2 dedicated server and then run battlefield 2 over the top of that and it works on my Athlon XP 2800+ and we all know how very much battlefield 2 is "resource hungry"