for anybody using FIOS, the problem lies on verizons backbone servers (specifically level3). The lag and rubberbanding happens when it hops to level3 before reaching SE servers due to high latency and load on level3 servers.
I called and spoke with FIOS tech support and they confirmed the problem with level3, but verizon cant really do anything about it besides reporting it. FIOS is built to take the nearest route to connect to SE server's, so the hop will eventually go to level3, unless SE relocates some servers or level3 fix their server overload.. both probably won't happen anytime soon..
In the meantime, use a VPN. it's the only temporary fix that works atm..