Not sure how to explain this, but is the game setup like WoW or a game like Startrek Online (AION).
WoW has it to where your client tells the server where you are, so you do not get any lag skipping in case you get some packet loss (where your computer shows your moving normally while others are skipping around).
Startrek Online (and AION) has it where the server will actually throw you back to where you were if you get packet loss. So the server only allows you to move when it says you can, if the server is lagging, you get thrown all over the place.
WoW = other people see you lagging, you dont see it
STO (and AION) = you rubber band on your screen