First latency is the delay in packets to and from your account to that of the hosts.
Example: You shot, that coded information is sent to the hosts server and a response is created and sent back to you (this all happens in milliseconds from what I understand)
Lag compensation, is a system that balances this issues with different service providers. When you are suffering from bad latency what you see on your screen will vary from what actually happens in the game. Other times you might see someone skipping, or as you said bullets find you as you hide.
This game has a serious issue in its programming to combat this, people aren't happy for this one reason.
I am pretty sure there are a lot more people out there not suffering lag issues but so few people come here to post anything positve about the game that we very rarely hear from them.
I dont have any consistant lag issues either, the occaisional spike and still get the odd WTF moment but overall BO2 plays a lot better than MW3 and BO1 ever did for me..
Everybody experiences lag of some degree, some worse than others, that is fact. Whether you notice it or not all depends on what you do in game, i.e. fast run and gun or camping, and how well the lag compensation is coded. In BO2 the coding is appalling, giving the advantage to players with the poorest internet connections in the lobby. I have a medium to good internet connection which means I get good and bad games, simply depending on what the rest of the lobby has. That isn't luck though, that is down to Treyarchs match making system; which personally I think is as bad as the lag comp coding; appalling.
I rarely bother to watch the killcam, but if I did then I am sure I would see a different picture to the one I experienced. I suspect a lot of players dont bother to watch them either and possibly have no idea they should never have died. I've played enough to know when the enemy should have died, and when I am being screwed by the LC. But I have grown to just accept it for what it is and hope that it gets tweaked, but I'm not going to hold my breath. In the mean time when I am being screwed by LC I will invariably end up quitting, joining another lobby and hoping my connection with the host is a better one. When it gets really frustrating is when you have a string of games with poor host connection.
Occasionally I will get a connection where the game seems different, the player seems to move faster and in a much more fluid manner, all actions like crouch, reload etc are quicker. If the game was like this all the time for me it would be great.
However most of the time my character is sluggish and the game doesn't flow, I've played most of the previous titles going back to COD2. Treyarch games also have a slight framerate issue so if the connection is bad the problem of "LAG" is increased.
MW3 actually ran really well for me but the original Black Ops was poor (I don't think Treyarch games like me!)
The sheer amount of discussions on the boards indicate an issue, sure you get people talking the game down just for kicks, but I believe the majority are genuine complaints. ( the numbers don't lie)
Glad it's good for you ( sincerely)
Try looking at this and see for yourself what the problem ACTUALLY IS:
The game is totally BROKEN. This is before you even go online at all.. so it's not network LAG at all.. it is the game that is the problem and the only way it will get better is if treyarch fixes it!!!!!
This video has done the best explanation of the lag compensation I have seen about this game because he actually understands the engineering behind the algorithms and how it affects the game.
He does a very good job of explaining extrapolation vs. interpolation as lag compensation and what you see based on what method the developers have chosen to use.
Lag compensation, simply put, is the attempt to sync playing experiences up based on a delay with timestamps of actions applied at the host level. BLOPS 2 uses a horrendous algorithm that puts in a timestamp delay that appears to try and sync actions at about .630 milliseconds.
What this translates to is the faster internet you have, the more delay will be applied to you from the host. This means, the faster connection to the host you have, the more you will be affected by the applied delay to sync actions.
A .6 second delay is the equivelent time difference between a 2 and 4 bar connection. This means that the way the game is coded at this point, is that the best of connections will take the largest hit. Those people people that have average to good connections will experience much less of this delay and probably not even notice the .3 second delay that they are applied because human reaction time is about the same.
Watch the video, it really is a great job of explaining how and why lag compensation is used with great visual representation taken STRAIGHT from Black Ops 2.