Delay

Hi,
I have 1-2 seconds delay between my 2 boxes , my main window is running fine but my slave is running spiky and with delay at any action.
I capped both of them at 30 fps , disabled AA, and all that but nothing works.
Because of the delay i cant keep my chars sync more then one step.

Spec:
Intel Quad @ 3.0 Ghz
9600GT @ 1GB DDR3
4GB DDR3

[Mahther]

When clicking once to move, do they move separately but end at the same location? If so, the delay is only visual caused by latency.