Demigod: Online gaming is terrible

The game is really good, it was worth the money but seriously, online gaming just doesn't work. When I play online the game just freezes for 1-2 seconds in like every 10 second. I can't figure out if it's my internet connection or graphics that's causing it or if it's someone else. When I play 1 player I can run the game with no lag at all and on other online games (Warcraft 3, World of warcraft for instance) I don't lag at all.