I find this thread very interesting. I'm from US and I experience everything you guys are describing on a regular basis. I had just assumed the servers were in JP like how all the FFXI servers were in JP. To learn they are actually a lot closer to home is a bit shocking. I think there is more here going on in the network code than the unfortunate side effect of dealing with travel time latency.

Regardless, I really hope you guys are able to get servers closer to you. It should be standard practice for any online game these days.