In Marketplace and aboard airship the lag was just horrid. I kept rubberbanding, and had hard time interacting with NPC's. With serious misgivings I went into Diplomatic Impunity -- solo level 13, on Normal. In the quest the lag was not as bad, but still noticeable. Curiously, all (or maybe all but one) freeze-ups occured when I was not fighting but just running along.

I will not run anything on higher difficulties until lag is fixed. Which I suspect means "When egg hunt is over".