In all these posts, I'm going to try and refrain from giving details about how we do what we do... it would just take too much time... but since it's you Damocles, I'll make an exception:

1) No. We have disabled 3DGS automatic sending of updates to ALL clients and wrote our own dead-reckoning algorithm. As you'll see next week, it's a smooth as silk on a babies ass! As you well know, 3DGS's network system is a FPS MP system (no more than 10 clients), not an RPG MMO system (over 100 clients). We had to do this to control what was sent to whom. It was a very simple solution that took me one month alone to program, another month for my employees to optimize, and we've been using it for over a year with no problems (bugs, yes; fundamental problems with our system, no)

2) This particular shot is all LAN. Our WAN tests are limited (which is what we will be doing early next week) but every time we have done WAN tests, the results have been the same as LAN. This is not surprising since WAN is just LAN only with more hops and we have algorithms in place (of which dead reckoning is only one) to take care of this excess latency.