I've been involved in and seen quite a number of lag type incidents where the prediction system seems to fail very badly, causing substantial contact between racers, then one of the racers gets his position corrected and carries on normally, well away from the contact zone, while the other is left in ruins. This is on a server where everyone is in the same country and regularly competes together and normally everything is fine - it just glitches in a really big way occasionally.

Has anyone else been experiencing similar with large grid sizes?
I can track down some replays if any of the devs really want a look.

Blowtus, would this server you've got an example of, be running with more players than previously? So if I'd suggest that it's the connection being unable to cope and a zealous admin, rather than a bug within LFS itself.

what would a zealous admin have to do with anything?
If the server was the problem I would have thought it would have been consistent in it's laggyness, but I guess you could be right...

Quote from Blowtus :

what would a zealous admin have to do with anything?

Zealous as in pushing resources too much, not as in ban happy