In your case i would say up your cpu. Up your ram.
HOWEVER you will still experience lag at busy times. That lag however is server lag. The only time I lag now is at events or when a bunch of people are in a church. At the events being 20 npcs are dropped plus 60 players plus the animations of fighting.
My system is like 10x better then those requirements. So you cant escape the lag. It sucks but thats the internet for you.
Can you include the requested network information? Since running the game at low settings got you an acceptable framerate, then it is more important that we check the network lag issue first. Please read the entire link and reply back with the network information.
For connection issues, sometimes more information is needed. These posts should contain:
Description of the Problem: 1. Server you currently playing on. 2. Problem(s) you are having including any error messages. 3. Internet Service Provider you are using and type of Internet connection. 4. Do you have a firewall between you and the Internet, or are you using any personal security/firewall software? If yes, what product and version. 5. Are you doing any Internet Connection Sharing or Network Address Translation? If yes, please provide details.
I am receiving the same ~150 ms path times after leaving the Sony servers when I try to connect to your IP address. This seems to be a problem transfering from the backbone servers to our network servers, and vice versa. You may want to try contacting your provider, and see if they can see what is causing this jump, and if they can route you through to our servers along another path.
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Turn off "Overbright" (the setting 2nd from the top, centre column) and turn off "load sector LODs" since you have "scale LOD with Framerate" turned off. That will save memory and harddisk transfer time.
Another thing; the system requirements listed are to run the game no worries in the SOE offices. They often forget that you need something faster than that to take up as much of the slack caused by internet lag as possible. As a rule always take the recomended system specs for a game and add 20% performance to that to get your ideal machine.
The lag caused by your conection latency will come and go with server load and internet traffic. I'm in Australia and with a good machine I can get a good 40 - 60 fps. (much faster in small areas like lifts though). Of course during busy periods or when I'm in an area (like Mara, Tabor or Achan in Richland) that has a lot of missions being run that can drop right back to4 or 5 frames per second at it's worst.
Another possible fix might be for you to clean out your computer. I mean physically clean it. Open the case and blow the dust off your CPU and GPU heatsinks. If these are even a little dusty the heat dissipation ability can drop by anything up to 60%. MxO is a processing intensive game and will push your CPU and GPU to their heat limits, when they get too hot they slow down to cool off... slowwer processor = slowwer framerate. I increased my framerate by 20 fps by cleaning my CPU heatsink.
CAUTION: NEVER vacuum inside your computer except with specially designed computer vacuum cleaners. Preferably use compressed air in a can to dust it.
Normal vacuums generate a lot of static electricity that can damage sensitive components in your computer (RAM, CPU, hard drives, etc...) Air in a compressor (as opposed to a "can" of air) can have condensation in it (water in computer = bad) and if the pressure is too high it can blow components right off your motherboard. I've seen it happen in the past.
Air in a can, or careful blowwing with your mouth (just don't spit) are the best ways to clean your computer.
