The most recent patch (V53) have caused me to experience this issue as well. Prior to the patch, everything ran smoothly, no issues at all.
After the patch, if even a small handful of player characters are around, FPS drops to a crawl. The tunnel or raid events are basically unplayable, less than 1fps.
-Tried turning dynamic lighting to FALSE in config file, did not fix fps issue.
-Tried renaming/deleting config file, did not fix fps issue
-Tried running the game in WinEQ2. Fixed the system gamma issue, but FPS lag remains near player characters.
This lag only occurs when PCs are in sight. Large empty zone or stacks of many NPCs do not cause this issue.
Any assistance available from the DEVs? It is fairly obvious this is an issue with patch changes, as before these patches performance was not impacted at all.
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-Glasken, coming out of retirement for Green99 
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