I am also experiencing an unusual amount of lag - and it appears to be server-side. I will hack at blocks, but they'll just come back. It takes me two or three times to destroy any block. Monsters essentially move at .5 frames per second because of how they just pause and suddenly end up right next to me (always resulting in my death with creepers). ZachariahSmith was also saying that there is bad lag like this. :/
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