Certainly going to want to cap your FPS, I suggest 60. When levitating, remember that if you are in third person, there is a chance your camera is actually looking downward. Anytime you plan on levitating zoom in to correct your camera to make it level or slightly above level.. same goes for if you do actually want to decrease your height quickly - you have to zoom in and look down.
Insofar as your chopiness, more then likely it is related to graphics. Again, cap your fps to begin with. It would help to know what the specifications of your system. EQ is not very demanding, and there should be plenty of bandwidth for your ram in almost any configuration.
Loading times can be decreased with a ramdisk, but to me that's just overkill unless you are experiencing serious or significant loading times (1 minute+).
Your internet connection sounds fine.. wireless is not so bad at all. Test your throughput on a speedtest site and although it won't be wired speed, it will be more then enough to handle EQ and about anything else.
It really just sounds like a graphics issue.. again, it would help to know what you are using to better assist you to make things more enjoyable.
Edit:
Would also be helpful to know what cpu and os you are using, as well as how much and what type of ram. You may be paging if you have a seriously low amount of ram, which would certainly cause chopiness.
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