We just tested the PC version on Ultra Quality, lagging is reduced by 90% overall!
PEACE ISLAND HAS NEVER RUN AS SMOOTHLY, AS IT DOES NOW. Believe it or not- the cause of the lags was not the complexity of the downtown sectors (although these do need to be optimized.) It was actually the 50 or so external readable objects - seriously- just around 50 objects were making the game virtually unplayable.
Unfortunately, this has emphasized an extant problem concerning clowder cats' teleportation - which is being fixed, right now.
There will be a fix up for PC before EOD - Mac/Linux tomorrow.
Thanks for everyone's patience - thankfully, the whole thing was much easier to fix, than we feared.