pinging IP is fine, some latancy issues on XO Communications,
100% packets getting through.
so its def not my network at fault

Most of the times it's upstream, the most over looked factory. You could have a 1 gbps (gigabit/sec) connection but if your upload is only 512/kbps its going to severely limit you. That was a issue my friend was having during OB, lagged harder then a haitian internet connection, had him run a speed test, boom 70 kbps upload, problem solved once he called up his ISP and they got him going.

a good place to start with working out if network lag or processing lag is whats causing the lag you're seeing is the following.

in game use the /netgraph 1 command to bring up your ping
use the /showfps 1 command to bring up your fps

if lag is accompanied with a large spike in the ping (which will show up as a big spike on the graph in the bottom right hand corner) then the network is causing the problem and thats a whole heap of other troubles.

if however the lag has no ping spike it could be a graphical or processing error, dealing with that depends on your system set up however.

drop a post into the technical forums, they may ask for a DXDIAG from you to help them locate driver and software problems, or be able to give advice on network issues to help.

i had similar problems with champs online, and followed the steps i mention here, i was able to see that 90% of the lag i was seeing was related to my own system, so i posted up a DXDIAG and that helped massively, both players with more technical knowledge and a dev were able to help me locate the problems and work them out. since doing that i've had no problems with champs or STO.

hope that is of some help to you

Wow that sure is a fast internet speed, you sure it isn't 8Mb?

If you have a brand new machine, go into the Properties for your NIC and make 100% certain that none of the power saving/sleeping functions are activated. I've had other MMOs that choke when I've forgotten to fix this (including WoW on multiple machines)