"Caused by: java.lang.Exception: No more empty terrain sprite indices left!"
It seems you're stuck with an apparent oversight in ModLoaderMP, even though servers don't handle sprites at all (it's a client-side job), ModLoaderMP Server still has an active 'addOveride' method.
Unfortunately there's not much you can do about it unless you're rather tech-savvy and have the tools to decompile MLMP and fix the problem. I have done this to my test server but I'm uncomfortable about distributing other people's work. I have posted on the SDK thread, suggesting the method be disabled.