The biggest issue on LAN is connecting directly to the switch, instead of allowing users to use hubs. Hubs can cause all sorts of problems, and raise latency. So you can shave another 10ms or so off connecting directly to a switch and dropping any hubs.
Probably not worth it to get too techincal nor do I want to invalidate what Daniel said, however I wouldn't say they cause "all sorts" of problems without qualifying that statement.
Hubs work ok depending on how many computers are connected and how they are set up. The connection can get horrible after daisy chaining a few of them together, even with just a few people. At least have 1 switch. Connect the server(s) to it, and any other hubs you have. Don't daisy chain the hubs. This is from lanparty.com and illustrates what I am talking about, but im my opinion they went too far with the hubs:
http://www.lanparty.com/images/subpages/smallnet2.gif
The servers should be on the switch along with each hub. In their defense this image was probably made when HL first came out. But games like BF1942 would put that setup under some stress do to all the network traffic. But hey, if you have all switches on your LAN, then more powa to ya!
-- - m0gely http://quake2.telestream.com/ Q2 | Q3A | Counter-strike
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