It seems exactly one in two missions, I get this weird lag that displays my character a few seconds late, so when I attack enemies by the time the lag clears up (then comes back) they're all the way on the other side of the map, or I'm dead.
But that's not all. When on a mission with other players, it shows them walking on air, through walls, and the same lag I'm experiencing.
I've tried toning down graphics settings and such, but it didn't help. Please help, this is ruining my Spiral Knights experience!
This sounds like characteristic server connectivity issues.
Your internet service seems unreliable or slow. If you are at 4 connection bars, you are getting temporarily interrupted service. If you are at 1 red bar, your ISP is not fast enough to handle all the information the game is trying to send. Ether way, you may get better results contacting your ISP to either upgrade your internet service or troubleshoot the connectivity issues with them.