I can now logon and update, though it's very slow (despite being on a 3.5mb connection). Once I get in game however, everything's practically frozen. I wouldn't exactly call it lag, rather I don't get any data at all - after perhaps 5-7 minutes of this I usually get disconnected.
As for the log:
Created DirectDraw object
Initialized Direct3D7
Initialized DirectDraw
Graphic Capabilities:
Drawing of alpha blended textures: true
Textures with non-power-of-2 size: true
3D Textures with non-power-of-2 size: false
2D during 3D scene: true
Use 32 bit alpha: true
Initialized Direct3D7
Graal has been activated!
Loading tile definitions for server Login
Connecting to the game server...
Done.
Loading tile definitions for server Classic
Connecting to the game server...
Done.
Loaded minimap from classic_overworld.gmap
FMod Sounds: using default sound driver
GraalScript: Function updateLantern not found in script of Weapon -system_camera
GraalScript: Function testDrunkMovement not found in script of Weapon -system_moving
Cheers, Stefan - it's nice seeing the man himself helping out
