If I had to guess on collisions, it seems to be a function primarily of the pilots FE.  If my FE detects me running into his plane, I die.......If his FE detects me running into his plane he dies.  Lag merely creates a discontinuity between collisions.  That's my best guess.
If anyone knows the answer i'd love to hear it!
   
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Jarbo
of the Buccaneers
"Growing old is mandatory, growing wise is optional."