/*
* Initializes Nagle's algorithm.
*/
socket.setTcpNoDelay(true);
Disables Nagle's algorithm - it doesn't enable it as you've stated in the documentation. Maybe read up on things like this as you're writing the code? Or did you just C+P this from another RSPS? This kind of ties in with the statement below:
Stop with the useless documentation - documenting what you write is great, sure, but documenting self-explanatory statements is just a waste of time. A random example of this, taken from the code you've written, is:
/*
* While the application is active the thread will be cycled.
*/
while (isRunning) {
Also, you really need to keep consistent in your style. For example, half the time you appear to be using 4 spaces, and half the time a hard TAB. It's a good idea to stick to 4 spaces - as the TAB character may be 4, 8, or anything really, spaces, depending on the environment.
Also, the game runs on a 600 millisecond cycle, not a 500 millisecond one. Were you referencing a server from 2005 or something? Good luck with the server, btw - there isn't really much to look at, at the moment, though, so pointing out problems is a little difficult.
Edit: This link may also prove useful to you.