Well I have done some research and I finally discovered the reason why my server lags.
Why you may have lag when hosting Halo CE:

I have written this article because I’m tired of people trying to host games with a low amount of upload. When hosting a game you need a good amount of bandwidth. A lot of people do not understand that yes you may have 3mbps download but you probably do not have much upload. A lot of internet providers offer huge amounts of download, but the amount of upload that comes with this service is usually quite poor. The average amount of upload that comes with an internet connection is between 128 - 384 kbps.
There is a difference between upload and download. Download is information your pc receives from the internet and upload is information your pc sends out. There are places online that will allow you to test your internet speed for free and the links for those sites are listed below. I will also list the amount of people you can host with your upload. Please note that your download speed should be higher or the same as your upload.

The amount of upload required (requirements for non-dedicated hosts):
-128kbps or more can host - 4 people (3 recommended)
-384kbps or more can host - 8 people
-512kbps or more can host - 10 people
-Greater than 768 - 16 people

When hosting I recommend:
-1.6ghz Processor
-512mb of ram
-Windows XP or 2000
-Broadband Connection with good bandwidth

I found this Source Here: http://www.forumplanet.com/haloplane...07&tid=1463498
Well I tested my speed Here:

My upload is 282 kb/s, so I am guessing that is why my server lags up. Archon23 was right when he said that it was a specific number of players. Well I tried the delagonator and that didn't work. So I am reducing my server so it can only host around 5-6 people. I'm sorry so if anyone knows a way to upgrade my upload connection. Then I can get it better. Well thats it for now.