Ok most of the time I play on a wireless connection. Yucky I know, but other than that their is only dial-up where I live. Most days are good but on a bad day I get DCed (disconected) every few hours.
Most of the time this isn't an issue. The modem goes dark a few seconds then it comes back on and reconnects. MOSTLY when this happens I hardly even notice it in the game.
Sometimes the game weirds out though. The bad connection light (with a chain) comes on. At this point my internet is already back on (I can ALT-TAB and load new web pages for example), but Wiz101 doesn't seem to think so. Eventually the screen resets or something with the loading page. When the screen reloads I have 2 problems depending on wether or not I'm fighting.
If i was NOT in a Duel - My character gets STUCK. The interface is hidden and my character can not move. To fix this I have to press Control+G a couple times to unhide the interface (I still can not move) and then Teleport to a Friend (or press the Home key to go to commons). Once i do that I can move again. Re-Logging out and in also helps, though if you don't know about Control-G you have to ALT-F4 or something out of the game. (escape won't show the exit button without Control-G first - oddly though you can HEAR the option interface opening and closing when you press escape).
If i WAS in a Duel - Basicaly you skip a turn because of Lag, not an issue but their are other problems. The characters battle animations get all messed up. I see the spells but the characters and monsters just stand their. Also you can not see the blades or shields or pips on the graphics. ALT-F4 and logging back in before your character gets kicked seems to help. I would assume/guess that teleporting would help, but you can't teleport in a fight so oh well...
Again this isn't an issue MOST of the time. I don't get DCed but a few times a week at most and even then the issue doens't always pop up. But the thing is that if the character is in the game and the problem is fixable in the game (teleporting), it seems like it might also be a problem with the way the game handles lag.