I just downloaded and ran mineserver_2012_12_29_191600_8ca6578c_VS2010.zip. Connected fine with my minecraft 1.4.7 client. The text for the download says it supports 1.4.6 client so that may be causing the problem I saw.
Basically when crafting the inventory goes decidedly wonky. I put two wood in my inventory crafting slots, shift left-click the output. I get 8 planks in my action bar, 4 planks attached to my mouse, and one wood left int he crafting window. I left click my inventory and drop 4 planks there. I then repeat to get 4 more. However when I then click on the 8 in my action bar, they disappear.
Does GitHub require a separate registration? I tried to submit a bug report there but it wouldn't let me log in.