Ok. So found out that my "lag" problem is a software one...
Basically ran a huge number of tests and turns out that both my machines have a program or setting or something in Windows that is causing the switch to turn off approx every 3 seconds.
(basically booted off a live CD and had no problems.... vs regular boot with problems.)
There's a whole load of data I've collected to support this but it's not really worth posting, just trust that this is the problem.
The question is how do I go about finding out which program or piece of software it is that's causing the network problem.