Difficult to say. On one hand, Team Fortress 2 is so laggy, it's unplayable right now. On the other, Halo 3 is probably the least laggy online game I've ever played on a console, and it uses user hosted servers. I guess it depends on the amount of data that is being transferred.
yeah. they are. In fact, I don't understand why Ms won't make an option where you can use a 360 to run as a server as I KNOW people would buy them and set up dedicated servers to play HALO and such. Then there could be 50 person games easy with the 360 only running server code, but alas...it hasn't happened yet.
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