I've been experiencing this exception many times, when my entity dies, or it checks for nearby entities using worldObj.getEntitiesWithinAABB or even when trying to move using moveEntity(motionX, motionY, motionZ),....
2012-08-23 15:53:07 [iNFO] [sTDERR] java.util.ConcurrentModificationException
2012-08-23 15:53:07 [iNFO] [sTDERR] at java.util.ArrayList$Itr.checkForComodification(Unknown Source)
2012-08-23 15:53:07 [iNFO] [sTDERR] at java.util.ArrayList$Itr.next(Unknown Source)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.Chunk.getEntitiesWithinAABBForEntity(Chunk.java:1073)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.World.getEntitiesWithinAABBExcludingEntity(World.java:3337)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.World.getCollidingBoundingBoxes(World.java:1461)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.Entity.moveEntity(Entity.java:657)
2012-08-23 15:53:07 [iNFO] [sTDERR] at willez.minegicka.Spray.onUpdate(Spray.java:75)
2012-08-23 15:53:07 [iNFO] [sTDERR] at willez.minegicka.SprayWater.onUpdate(SprayWater.java:41)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.World.updateEntityWithOptionalForce(World.java:2021)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.WorldServer.updateEntityWithOptionalForce(WorldServer.java:538)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.World.updateEntity(World.java:1986)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.World.updateEntities(World.java:1867)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.WorldServer.updateEntities(WorldServer.java:437)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.server.MinecraftServer.updateTimeLightAndEntities(MinecraftServer.java:616)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.server.MinecraftServer.tick(MinecraftServer.java:547)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.IntegratedServer.tick(IntegratedServer.java:102)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.server.MinecraftServer.run(MinecraftServer.java:453)
2012-08-23 15:53:07 [iNFO] [sTDERR] at net.minecraft.src.ThreadServerApplication.run(ThreadServerApplication.java:17)