Dedicated Server Input Lag Problem

[PeteTheLich]

Running a dedicated server with the caves server.

So i have this strange problem that I can only describe as "input lag" I use the mouse and whenever I go to pick things up it lags for a split second then completes the action. Its not too bad except for attacking things it completely ruins the timings. (can almost do a 2nd swing before the first attack "lands" ) if a spider is aggroed to me and I run up to attack it the spider will hit me FIRST because the attack landing is delayed.

I believe it to be a hardware issue since im playing on the computer with the dedicated server.
Nobody else on the server is having any lag issues only me the host.

I read that DST runs on a single thread but my CPU wasnt exactly being stressed


specs:
 

Windows 7 Ultimate 64-bit SP1

 

CPU

Intel Core i5 3570K @ 3.40GHz 47 °C

Ivy Bridge 22nm Technology
 

RAM

16.0GB Dual-Channel DDR3 @ 666MHz (9-9-9-24)
 

Motherboard

ASRock Z77 Extreme4 (CPUSocket) 38 °C
 

Graphics

ASUS VE278 (1920x1080@60Hz)

ASUS VE278 (1920x1080@60Hz)

Intel HD Graphics 4000 (ASRock)

2047MB NVIDIA GeForce GTX 660 (EVGA) 48 °C

 

Storage

232GB ATA Samsung SSD 840 SCSI Disk Device (SSD) 30 °C

931GB ATA WDC WD10EZEX-75Z SCSI Disk Device (SATA)