The lag currently makes it skip so badly that combat is nigh impossible. please. Fix. I like this game, but I REALLY hate this lag.

Is this lag continuous throughout the entire game or only in certain places?

Try disabling shaders in the Video Options. Or lower the LOD numbers in the Graphics Options.

It's network lag, IE I end up where I was 2 seconds ago. It's really frustrating, since it makes aiming for combat so hard.