Ok. After careful investigation. It appears that we actually programmed the world's first Artificial Intelligence in Mr. Puggles the Executioner. When he realized that he was self aware his first move was to take down the Salem server and begin duplicating himself for world domination.
I spawned into the world and began fighting him. The battle was tough, but I was finally able to overcome the throng of Mr. Puggles and delete that part of his code that allowed him to experience emotion. Since he had already begun harvesting tears 'the natural resource of salem' his new found lack of emotion caused himself to go into an infinite loop and inevitably explode.
So yeah... Server is back up.