I also found out somethin, now apparently the games server or host needs to have lots of UPLOAD bandwidth. And the scary thing is not even ADSL is sufficient in lots of cases!!! So although the HOST pc sees no lag, everyone else does, because their PC's arent recieving the games data (IE People position etc etc) However with games like Daoc (HAVE dedicated servers) thus have no problems with 1000's of players online. As the servers can push data around the network very fast.
In a word the HOST PC or SERVER PC has to have good upload speed, EG: C&C Renegade recomends and ADSL host only have 4-8 Players!! MAX even though that PC can participate along side 56k users in a 32 player games on a good server.