I don't think it seems to really be on Ariki's end too much, but likely something between Europe and New Zealand at times..
A week ago, together with Seregil, we tried to fix a connection issue of mine since i was getting unplayable lag. We did ping tests to the server and I got an average latency of 800 ms.. It was already that high when I entered NZ through a traceroute..
It's porbably part due to the VMWare as well, but there may be a physical problem that isn't as easy to fix..
Please try these things that helped me as well :
1) Try to change to a 5 GHz network, this seemed to lower my ms with roughly 300-400 ms, for some odd reason
2) Don't just suspend the VMWare machine (as in, not shutting down the OS inside the vm, just closing the program.
Make sure you shut down the OS inside the vmware as well.. If the rpoblem persists, try restarting your native OS and then also restart the OS inside the vmware and then try to connect again.
3) Fiddle around with the network options from the vmware, there should be several options but this depends on the vmware program you're using.
4) Don't run other VMwares.. I was emulating windows 7 and mac os x 10.6.8 at the same time and that seemed to lag the connection pretty badly, helped a lot after shutting the windows 7 down.
5) Move to NZ
(didn't actually try this one!)
Obviously most of these won't help you at all if you're not using a vmware ..