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But the thing it, it doesn't always lag. Sometimes the server will eventually start working correctly, and sometimes it takes literally two minutes to pick up an item or move one foot with no sign of getting better, and sometimes it runs perfectly. Ping is indicative of nothing; usually the spikes occur when I have less than a hundred ping and then it'll run perfectly when I have 500 ping. (And it goes from 80-1000 in this one server, but never seems to have any correlation with the actual game speed.)
I don't mean to sound like I don't like the game. The last time we played we were at Day 220, and if that's not dedication, I don't know what is... xD The lag is just ridiculous though. I really don't understand how half the people can play with no problem and half can barely play at all.
At first, I've played around with the dedicated server on my local machine and the results felt much better ( quite an improvement ) over the standard way of hosting the game ( both over an internet connection and LAN - wireless )... That being said, I can only ( hastily ) conclude that the dedicated server is indeed better optimized ( as also stated on the Wiki: http://dont-starve-game.wikia.com/wiki/Don%E2%80%99t_Starve_Together_Dedicated_Servers ) than the client version and if you want to minimize ( even eliminate ) lag, then it's something you should consider doing. After this initial success, I've decided to make things slightly bit more permanent and installed the dedicated server on one of my VPS hosts ( specs: Ubuntu Server 14.04.1 LTS, 6 cores, 8GB Ram - up to 16 GB dynamic - 250 GB SSD and 500 Mbit/s connection ).
I'm planning on playing with a couple of friends in the upcoming days ( 8-10 people ) but for the time being, only 3-4 of us were able to test it. As of yet, there were no issues, no lag ( server ping of 30-34 ), everything working the way I was expecting things to work before I started this topic.
Hope this information will be of help to some of you. Cheers!