Aaaaaand back to cr@p again lol.
This time, I had my Windows 8 Resource Monitor open to find out wtf is going on. Throughput on Tequatl (same dragon from my earlier post) was running at 40KB/s with 220ms latency (2 connections, 1 for chat and 1 for game traffic). After fight I noticed a lot of connections running connecting to the same 2 IPs but with 370ms. At the moment it's back to 220ms.
All of that seems fine. Only thing that concerns me is that with all of the activity going on (lots of players) I would expect my traffic throughput to be higher. I know that with WoW at least, when I had a 384k line, when that maxed out at 40KB/s on my bandwidth meter I would experience similar lag (several seconds delay in action casting). The very fact that this is maxing out at 40KB/s now on my 1MB line indicates to me a shaping of some sort. A few guildmates on MWEB as well seem to be complaining of similar issues.
I am going to try the Leatrix Latency fix in the hopes that increasing the TCPack will alleviate some of the latency while waiting for this shaping mess to be sorted out (even though its being denied ^.^)