Vsync shouldn't have any negative effect on your lag, etc. You can uncheck it, but it shouldn't matter.
Vsync just synchronizes the game's/video card's display to the refresh rate of your monitor - which only displays 60fps anyway. So, when you uncheck it, the game will run at 120fps, but essentially, 60 of those frames are "wasted" because the monitor can't display them.
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