Nah, it definately works in a different way. The jumping is 'cause the server only fetches linear movement from one point to another. And those points (the new player location) is only fetched once in a while (together with all other action info) and takes horribly long to get validated and sent to the other players. Increasing the fetching rate would decrease the visual abnormalities and lost commands. Reducing the time until stuff is being sent to other players would reduce the lag.