There a really two solutions to this, fix the lag or fix the issues created by it. The first option is the idlest but almost defiantly impossible, so it is time to consider what lag creates and how that can be fixed.

One of the biggest issues with lag is that when you’re lagging, your ship appears to just hover in space while the bots fire away at it no matter what you do. Of course when your connection is re-synced you take an instant amount of lethal damage. Perhaps the simplest solution to this would be to program into the AI of the bots not to shoot at ships that are lagging, but then players could find a way to simulate lag to make them immune to all bots.

Maybe it would be better to program the bots not to fire on a ship that is stationary and not firing, and also when a ship is having connection problems to freeze it in place and to disable its weapons. This would allow for ships to recover from connection problems without receiving instant amounts of lethal damage (in most cases) while allowing people to simulate lag without any real benefits, and also allowing pilots to avoid a possible fatal confrontation with bots for a short time.

Uuuh... Where do you get your info?
The lag is almost definitely fixable, and is being worked on. Pay attention.

a1k0n breaks the code on occasion. He will fix it Soon™ so please be patient. This issue has been discussed in multiple threads.

http://www.vendetta-online.com/x/msgboard/1/6227
http://www.vendetta-online.com/x/msgboard/1/6177
http://www.vendetta-online.com/x/msgboard/2/6211
http://www.vendetta-online.com/x/msgboard/2/6163
http://www.vendetta-online.com/x/msgboard/2/6166

sorry first time on the forums, did a search and nothing came up

and i'd agree that lag cause by bugs in the code is fixable but in general there is no way that the internet is going to be perfect everytime people play and conection issues will never be fixable

The forum search algorithums do need some tweaking.

The game was very playable until they patched it to 1.0.7. They introduced server side code to decrease lag and it actually increased it. a1k0n is working on it and they will have a (hopefully) functional patch ready very Soon™. Again, please be patient and all will be good. We've been through this before.
(^.^)

I'd back paedric on this. Until the current bug came up, the engine was rock solid for players in the US, and largely good for people overseas.

A friend of mine is in Australia, and was having no trouble until 1.0.7.. and was, in fact, having no more trouble than me, and I'm Stateside.

StaticV, this isn't the first "Lag Issue" we've had. Over the course of Vendetta's development there have been many times when the server has been laggy to the point of unplayability due to some bug in the code, and every time the devs have fixed the bug itself rather than "fix the issues created by it."

Have faith, they'll get it Right ;D