My friend and I were in PSN party chat when we experienced this lag. I was in Reaper's March and he was in Grahtwood. Any sort of input we put in was delayed by at least 4 seconds with other characters acting laggy as well. We then d/c at the same time, but were able to get back in shortly. This lag hit once again about 30 minutes later but was not as bad (1-2 second delay). My theory is that massive battles in Cyrodiil caused this server issue since AD had just taken the lead and there were huge zerg battles going on around this time.