Maybe there is the same client side lag like in TF2:

Disable the game overlay in the Steam settings, restart Steam and look if it 
solve your lag problems.



> After last weeks update many of our regular player if not all of them are 
> complaining of lag. I got on last night for a few hours and seen it also. 
> Not rewind lag, just an annoying low level lag. Twice last night I had 
> people either disappear and appear in front of me. I read release notes 
> that they lowered the bandwidth requirement. Should I adjust my server 
> rates perhaps? CPU and Memory is very low. Running on a dual quad intel 
> with 16gig memory. So I should have more than enough horespower. This 
> server has been running for several years without any noticeable lag. 
> Anyone else seeing issues? Anyone care to post there network settings?
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