Yeah, online is a bit sporadic for me on XBL. If I go into lobbies and find matches, it's not too bad, but I haven't had any matches in ranked that weren't laggy.
As far as the game itself, it felt clunky to me at first as well, but now that I'm figuring out how combos flow, it's working out much better. The only issue I have is that I need to really train myself to use the block button. Years of non-MK fighters have trained me to play a totally different way than you should in MK. The system highly encourages and rewards aggressive play.
My only beef with the game right now is that there doesn't seem to be alternate colors for the characters (there's a few alternate costumes though), so if you aren't paying attention, it can be possible to lose track of which character you are in a mirror match.
