what ive noticed so far playing...is that PLAYERS don't lag...but bullets can. i shot at a wall and noticed it to take a bit to register with an explosion off the wall.
Stop worrying about the graphics (that are still great when "dumbed down" for online stability) and worry about having fun. If you want to look at a visual masterpiece play single player and look at the scenery all day.
Fuck Im pissed now. I've played the game for maybe 10mins, planned on playing tomorrow night, but just got a call from the boss saying I have to go out out of town until Friday!
Graphics look crazy good. Still getting used to controls, its wierd having to use the D-pad after playing COD2 for a long time.
This isn't the point of that I'm trying to get at. I'm sure that the game is awesome online, and i'm sure that it still looks great online, but if we've already reached the maximum potential of the 360 then thats absolutly gay.