I was killing time at work today and found this web page on Lag in Online gaming. The part that stood out to me the most was the Ping Lag and Packet Loss on page 4. This is exactly the kind of lag that countless people experience on a daily basis in both PVE and PVP. As the article states, Ping lag we can't really do anything about as it's our distance from the server causing this problem. One "Megaserver" will cause this issue as the farther you are away from it, the higher your ping will be. ZOS kind of gimped us from the start here with doing things all on one server. I love the idea of being able to play with everyone but just feel we don't have the technology quite yet to constantly deliver a smooth gaming experience for everyone regardless of where they are located.
Packet Loss is however a server sided issue. I copied the below info directly from the article.
Unrelated to ping lag, but equally as annoying is Packet Loss. This phenomenon is actually a connection-related problem, because some of the packets of data travelling between you and the server are being dropped somewhere along the line. This means some of your actions won't be reflected in the game, and often you will see a rubber-band or warping effect, and things will become jerky and unpredictable. The only thing you can do at your end is to make sure you disable any background programs which are using your Internet connection at the same time. This includes any file downloading/sharing, messaging or similar programs - they can result in both ping lag and packet loss during online games.
If you check with others on the server and they're also experiencing the same problem, the server is to blame and you may need to find another server or wait it out. Anytime I am experiencing Lag in the game, there's always someone else I'm talking to on TS that has the problem at the exact same time, regardless of where they are located. That IS packet loss on the server side and not an individual ISP issue.
Hopefully the PVP changes coming in Imperial City will resolve the Packet Loss issue. That is exactly what's happening every night in high population PVP Campaigns.
That being said, I hope I am wrong in this next statement, but with the introduction of Imperial City, I think we are going to have even worse packet loss than we are already experiencing. We will see when it comes to the PTS later this month, but even if there are no issues there, that doesn't mean we won't see it on the live server. My biggest concern with this is that people will flock to Cyrodil like never before to check out Imperial City. The packet loss will be so great that nothing will work. You won't be able to open doors, containers, cast any spells, people will loose tons of siege weapons on this. I sure hope I'm wrong here but unless ZOS can resolve the server sided issue, we may be in for one he** of a lag fest......
http://www.geforce.com/whats-new/guides/how-to-get-rid-of-lag-guide#4
NA Server - Kildair