So, I am running an nvidea GeForce GTX 670 on Windows 7, with the latest nvidea drivers, which were installed well before all of this lag.
After shortly after 2.2, in the morning... note, the MORNING, when everyone is running roulette like crazy... no problems in the evening... I get absolutely retarded lag... I mean "your fps is now 0, have fun watching a slideshow" lag.

Here is the thing. My internet connection is perfectly normal and stable while this is happening. Granted there is the occasional Sending:0 during the bouts of lag.
The interesting thing is that my video card stops receiving data from FFXIV.exe. What keeps happening is that the game will literally stop sending any information to the GPU, then it will send everything at once, and stop again... Hence the 0 fps slideshow experience.
As this is happening, my video card's fans are just turning on and off, causing a kind of vibrating sound every 1 second or so.

I am currently reinstalling the latest 335.23 drivers from the nvidea site... hopefully that will help.

I dont know... this is not an ISP issue, and my GPU has no issues whatsoever with any other games, or in the evening. But in the morning, shortly after the daily reset, the entire game, towns, zones, dungeons, and especially any time there is combat going on ANYWHERE... im playing FFXIV the 1920s Slideshow.