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The demo was a LOT laggier than the retail version. I've been playing it since the first day the MP demo was released. There are definite improvements and it will not be as laggy as it was. One bug in the demo (which may or may not relate to what you are experiencing) was the game would lag completely out for a bit, and your ping would report as 1023. It was a software bug that they fixed. I know people who play on 56k connections with little to no problems so you should be fine.
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