I'm having the same exact problem. My character just freezes and can't move, and no one else moves either. Then 30 seconds to a minute later, everybody is like 100 feet away from me and monsters are already dead. The "jumping around" issue other people are experiencing is due to not recovering from the lag completely yet, I think. An easy way to tell when you recover from lag is to type a message in team chat (or whatever chat). I usually say, "Wtf, lagged out again!". If the message doesn't show up in the log, you know you're not recovered yet. Even if things start moving again, and the message hasn't showed up, you're not recovered. If you try to move when this happens, you'll simply be warped all over the place until you ARE recovered.
This is really annoying for me, and I'm actually having lag issues in EVERY game I own now. I have no malware on my system, I don't have anti-virus programs running, and Comcast (my cable internet company) says my signal is fine. I think they're lying though, or are just simply pinging me for a short time. I have reason to believe the connection between comcast and arenanet is messed up, because I ran ipconfig /all on arenanet's servers and almost all the hops had 0% packet loss, but some of them were like at 95-98% (3 of them I think). VERY annoying stuff. I can download at lightning speed (400kb/sec, I'm not complaining!), but it seems that for games, I'm stuck.
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