I lowered the update rate to 2 for positions/rotations/scale(38 bytes) and am also sending 5(14 bytes) velocity updates a second and it feels pretty good...I'm also gonna need some updats for the two fire buttons. My position correction code needs some help though. right now it just snaps the position back if it's off by too much. It's especially noticable when the player makes sharp turns.
Even with these low update rates I'll only be able to support around 200 players on a 10Megabyte connection.
Can you recommend some good cloud hosting services?