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Weirdest lag I've ever seen

I figured out what was causing me to lag but it's really weird. Whenever I'm near many NPC's i start lagging like crazy (Ellinia or Kerning for example) but on any other map (mobs or whatever) it runs perfectly smooth. But the problem arises only when I get near MANY of them (either that or something related with the quests they give but idk), for example I could be on Henesys and be far to the left where there are very few npc and still be fine but when I get to the right I start lagging again until the screen freezes. Can anyone help me with this issue?

January 1, 2011