There was a thread a few days back that said if you put your Search Preferences on "Best" it would help with all the connection and lag compensation issues.
Everytime I search for a Lobby under "Best" it throws me into a lobby where everyone has a 1 bar. Every single time. If I play with a group of people, and the party leader has it on best, (only when we have 6 people form the same part of the US) we get lobbies with 1 bars.
This game is hard enought o play with the lag handicap as it is, but watching yourself and other hop across the screen for 10 mins without a host migration or anything at all is a little bit much.