Our server used to be hosted, but we decided to switch to a home host because I had an extra computer and was willing to dedicate the time and effort to get the Server to run on it. When it was hosted, the Server was 1.8. When they sent me the world file, and I set up the Server on the new "host" computer, we played on 1.8 for a while. 1.8.9, mostly, but soon were impressed by 1.9 logic and redstone, and decided to update to gain the advantages of various tags, etc. We updated 1.9.2, and after a few weeks of running the Server completely fine, nobody can log in one day. I check the logs, routine stuff, everything working normally. A player would log in, and disconnect immediately in Server Console, presented on the client Minecraft would be an error stating such as "Internal Exception: io.netty.handler.codec.DecoderException: Badly compressed packet - size of **random number** is larger than protocol maximum of 2097152" and sometimes, instead of just connecting and disconnecting immediately in console, they will connect, the console will spam out with io.netty and EPOLL errors, and they will disconnect. We have a backup script running which backs up the Server every day, at about 12 A.M, so, when we do get the Packet Error, we just reset to the previous night and continue working. We can't live like this, always constantly reverting because of this Packet Error! I have provided a log file and a "screenshot" below, and hopefully they will help you Mojangsters help us solve this problem and get back on our feet. Thanks, and please help!

( I swear to god, if you declare this Invalid, or refer it to another part of Mojang without solving it, I will be pissed.. )

Here is the screenshot.

https://nus1-api.asm.skype.com/v1/objects/0-cus-d2-a7290d7ca9152a0391794f9267d2f301/views/imgpsh_fullsize

And the LOG file is included as an attachment.