While I might not share your full experiences with this lag since I don't pvp, I can at least speak on the behalf with the sparrow racing. I, too, have noticed a ridiculous amount of lag. I had a race the other night, was in first on the mars track, then all of a sudden, I was in third with two people who just appeared in front of me. My internet is not that bad that it was on my end. Don;t know what happened. There. And those stupid twitching fans. I think those things have claimed more lives than the black plague from the lag sometimes.