Not that great.
Im 14 years old and just finished my first online game, and it runs off my home pc, on my home internet ocnnection, and it doesnt lag this much. Plus I get the feeling its not truly a live connection... sometimes you shoot the 'stickmen' and it doesnt affect them.
And, my last point, is that someone went to all this trouble to make an online shoot em up and made the graphics this bad.