Thanks everyone for the feedback. I've got a lot of things to address here...
This happened to someone after we switched from CTF to Match with him holding the flag before we switched.
After changing from CTF to Match.. This is what happened.
I also noticed a few issues, my friend Sky quickly changed to Tails and started to fly, but he appeared to be as a flying Super Sonic for a bit, as well as when switching from Match to CTF, everyone was flying as solid spectators for a bit, it was silly for sure :P Also when shooting someone, I saw them in their death state for a moment, and they didn't get hurt.
Thanks for these reports! The "GOT FLAG!" and death state isues have been fixed. On the other hand, the spectator and character issues are only visual and temporary; so in the name of bandwidth conservation (and overall better gameplay), I'm letting those slip for now. (They're pretty fun to watch anyway. =P)
There are indeed times when players teleport and rings miss when they shouldn't. This is SRB2CS's equivalent of spike lag and control lag, respectively. Changing your playstyle may help - when under high ping, keep your distance from opponents and/or use rails more frequently. Doing this will generally make gameplay more accurate on the high-ping battlefield.
I'm also going to agree with most of what Prime 2.0 has said. But there's a point I'd like to make. As far as Match and CTF go, this mod was designed purely to give players a new alternative. We now have a choice between trying to play in control lag, or being assisted by automated lag compensation. We can now choose whether the host and nearby clients have an advantage, or whether all players have a fighting chance against each other. That's the focus of this mod. After five years of playing this game, I'd rather have a few unregistered ring hits than try to aim everything 200ms ahead of time.
Race mode... I'm still a bit iffy about implementing this. Because SRB2 is indeed very fast, the player prediction will be hard to do - as anyone with control lag could tell, predicting where a player will be in 200 milliseconds isn't easy. If anyone's interested in seeing how it may look without it, though, there's always the -force parameter!
Thanks again for your feedback, everyone! I can't wait to get in a big netgame and see how it performs. Unfortunately, not many people are around yet... guess I'd better start work on a time-zone mod!
Edit: I'm afraid MS support is new, and is still largely untested. It's worth reminding that you won't be able to successfully join a server if it doesn't have CS mode (cshost) enabled. There may also be some conflicts between this mod and SRB2CB (due to a similar version number). Other errors may be beyond my control - make sure no firewalls are blocking SRB2, and make sure that both ports (5029 and 5030) are opened on the UDP protocol. (Hopefully, this won't be necessary for much longer.)
Edit 2: Bbop800, you're right - MS support seems to have completely broken overnight. I'll be looking into this.