If you are having speed issues from the client side, then I'm not sure what the deal is... The issue I'm talking about though shouldn't make the connection feel slow. You will see all the clients at a 0 ping, exactly as they are, and they should have a LAN quality ping to you as a listen server, no problem, from the serving machine though, they will simply appear dusty, like the render of the clients is on a different, slightly lower clock cycle then the one you, and the world operate on, so it appears a litte dusty.
It should be more like the player pawns are "tearing", but not so slow that they are "warping", and really only should be an issue to people who's visual perception is sensitive to stuff like that. I always made my other friend serve, because it didn't bother him, nor effect his game, as it did mine.