I have not had time to work on it recently, but the last series of tests were promising.
Running PK online at a 6th of the bandwidth and still relatively smooth gameplay. There may still be some issues created by the server not running at a constant rate, which in itself might resolve a lot of the issues. Other things which need attention are:
1. Local client prediction of events (item, teleport, weapon).
2. Item events in PK code are not specified by time (PCF themselves criticised this!). What it means is if you have an update every 50ms, then all events over that last 50ms happen all at once. This is not particularly healthy for the code where 50ms can easily represent 6 or so frames of gameplay. At lower update rates this becomes signifcantly stuttery.
3. Local client anti-lag test, i.e. what you hit on the client is what you hit on the server.
I will keep you updated soon and hopefully issue a early test version. Do not forget that perfection is iterative and it will take time with your help to improve.