Depends on what you mean by lag.
Latency issues, it's your internet.
FPS issues, it's your computer.
And from your specs, you shouldn't be having any FPS issues. I've got a lesser computer, (AMD 64bit 3000+ 2.0ghz single core, nvidia 7600gt, 1.5gb ram) and I never ever lag at any point.
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Is to relearn what is known.
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