Why do I lag so much?

[lordebon]

A latency of 335 is miliseconds, which means it's ~0.335 seconds not ~3.35.

And from the sounds of it that may be your issue. It's usually pretty easy to tell graphics lag and network lag apart. If you can move around the world smoothly (or smoothly-ish) but nothing you do seems to make a difference (and people and such don't seem to move, or seem to move too far and then warp back) then it's network lag. If on the other hand the display of the world itself stutters then it's graphical lag (or sometimes a combination of both).