Lag may come from 2 aspects, GPU lag and network stack lag.
It occurs to me PS is render engine driven, which IMHO is not optimised and suitable for large projects.
// start the main event loop
csDefaultRunLoop(object_reg);
For MMORPG, sometimes even 10fps is acceptable, as long as you do not tie game logic to rendering.
Something like below might be a better choice.
while (!quit)
{
...
doGameLogic();
doAudio();
...
if (time2render)
renderOneFrame();
...
}
Also, for many players there is no lag when logged in, but more and more lags as time passes. Something not properly cleaned up?