Since you don't appear to have taken the hint, I'll give you more ... {grin}.
Let's take the simplest of formations - a 3 aircraft formation wingtip to wingtip in level flight - start with 2 of you, with a foot or two between you and your partner. Assuming 250 ms of lag between you and your partner at a speed of 250 MPH, how are you and a partner going to fly in such a manner that you are wing tip to wing tip from the point of view of an onlooker? You can't fly wingtip to wingtip with your partner on your FE, that puts you about 30 yards ahead of him with respect to the observer. Nor can he try to position himself wingtip to wingtip to you. Now, add in a 3rd player, with another lag value. Where does he fly, and how does he orient himself to the both of you?
Now , add in another observer, and another, each with a different amount of lag from the first, and each with varying amounts of lag from you and your partners. What do they see?
<S>