Thank you all for the feedback.
If you're on a skinny pipe - I don't think anyone is on 56K dialup any more but that's the lowest end, followed by sattelite, then DSL, then cable, then fiber at the high end - then having a very high S/R could be causing lag because your Internet connection just can't handle it. Cable is usually only an issue when you're on a shared connection with others, such as in an apartment building.
You can go to speedtest.net and run a free test on your Internet connection. If your down stream is any less than 1 mbps and your up stream is any less than 0.5 mbps, you probably want to call your ISP and have words with them. Even the lowest end DSL promises at least 3 mbps down stream.
Additionally, high S/R loads can gum up a slower/older computer system since so much is going on that it's going to have trouble rendering everything since the amount of data it's getting is too much for the GPU to handle. We saw that was a major problem in FFXI.
I'm on a 10d/1u Mbps adsl connection, so speed isn't the issue. I also use speedtest.net frequently, and there are no issues. My ping is almost always below 100ms on any of their servers. I also went to pingtest.net and got a latency of 300ish when testing their servers in the USA.
Computer power also isn't an issue as I'm using a 4770K, which is one of the top CPUs on the market right now, along with a GTX 660.