Kicking Myself let us know about this forum post on the Global Operations message. Producer Dan McBride discusses the beta and the lack of quality servers. He says more high quality servers will be available at launch of the retail version of the tactical FPS. They are also testing their Linux server port at the moment. Here's what he had to say about lag

There have been many reports of high ping servers and general lagginess. We believe that these reports are largely due to any or all of the following conditions:

i) inadequate CPU on the server machine.
ii) inadequate bandwidth on server.
iii) upstream data spikes when clients joining.This problem appears to be worse than we had originally expected, we will be looking at flattening these spikes to minimize their effect.

We do quite complicated collision detection and ballistics, and the code was designed to have highly authoritative servers to preempt some forms of cheating. We will continue to optimize the server to improve performance and are confident that future versions will require less CPU power than is currently the case.