[Dan Hibiki]

Well, I'll make it as plain as I can...

When people battle each other, their computers send information back and forth, telling the other computer what that player is doing and where they are. If something happens to some information sent by one computer, voila! You get lag. The other computer doesn't get the information, so the lagger appears to just stay still. Once the lagger's computer manages to send the information successfully to the other computer, the other computer's user sees the lagger's character appear wherever the lagger went during that time when the information wasn't getting through. In Turbo mode this would happen a lot because of how fast the machines need to interpret the information and then send their own information. The faster you go on a slow connection, the more trouble there will be getting the information to the other computer. In Normal mode it goes slow enough that lag isn't serious usually (even though it can still be).

On a side note, another thing that could cause lag is a difference in modem speeds. If I (cable modem) challenged somebody else (56k modem), there would probably be lag, especially on turbo. This is because my computer can keep up with sending the information, but the other can't. It is just like how downloading takes longer with a slower modem, only the opposite. It takes longer to send information out, as well.

Did that help? I hope so; I don't know how to make it simpler...