I asked this question on official FTB page, no luck with answer so might as well try here:
Launcher Type: FTB Launcher
Modpack: FTB Lite 3 (Server)
Modpack version: v.1.5.0
Have you modified the pack?: No
Link to log file: http://paste.feed-th...m/view/128405a4
Details of the issue: I downloaded latest FTB Lite 3, and latest server pack (directly from java launcher), setup everything, yet me or anyone else is unable to connect; and we get the "A Fatal Error has occurred, this connection is terminated" note. This happens regardless if I connect to server via IP, "localhost" or external IP address (I host it on my main PC, and several friends tried to connect with same issue). Did not added or modified original packs in any way.