I'm noticing a very strange lag now I've finally updated to 1.6.2 and got on the server. Teleporting around puts me underground after about 10-20 seconds of nothingness (save for NPCs nearby), both in my own area and at the teleport hub. Things can be very unresponsive but placing and removing blocks work just fine. It's like being somewhere in the middle of normal play and lag (not frame drops, FPS remains at or near 120 at all times. Sprinting around works fine but causes my screen to later, such as 30 seconds later, zoom in and out much like i'm sprinting while I'm standing still.
Overall, very strange issues, wonder what the cause might be, as my internet seems to be working quite well today.
EDIT: A time out just followed after about 10-15 mins being on.