Server Discussion Multiplayer lag

Can't seem to find many post regarding the poor performance of the multiplayer experience so here we go.

My friend and I get a very iffy experience playing this. 50% of the time it's running lovely and we're enjoying every bit of it. Ofcourse untill we lag so much that the day night cycle stands still and enemies teleport around the screen.
We have been troubleshooting for the better part of the past week and still came up shorthanded.

Is the community accepting this level of performance or am I just too late to the whine wagon?

(Edit) Lag as in high latency and/or packet loss.

 

I always assumed it was computer processing power and server quality/distance that caused it. Nice to know that at least others have the problem.

 

Mmh, I haven't experienced such lag since 1.0.2, but I host on a computer that only does Starbound, and I have a stable/cool internet connection.

The server seems to have a lot of work to do in Starbound though, so as Sock of Retribution says, maybe the computer which hosts the server is struggling a little too much? Have you monitored how much resources it takes (processor/RAM)? Maybe choosing the most powerful computer between all of the players to host the server can make things better?

And yeah network quality can also be an issue. When playing, if all players limit network activity to Starbound playing, is there still lag?

You say it's something like 50% of the time you experience lag. Have you noticed a particular trigger to lagging? Like being in different worlds, playing with huge amounts of water/sand, generating more worlds? Time of day?
If you restart the server when there's lag, is it always better afterwards? If yes, that might be the computer, if not, I would tend to accuse network quality (?).