I ran "Into the Deep" last night for the first time and after finishing the quest (loved the chain so far), I decided to try the demon in the pit optional.
I jumped down into the demon pit along with my cleric hireling and was greeted by the red-named demon boss -- and the worst lag I've ever seen in a one room instance! After I got him down to 1/5 health everything stopped moving and then I get the you've been killed, wanna release button.
There was only the red named guy and an occasional fire reaver that spawns so there wasn't a whole lot going on for combat, so where is the lag problem coming from?