I\'ve a server/client architecture implemented, where all state changes are sent to the function, validated and broadcasted to all clients connected. This works rather well, but
If client see events happening at the rate the server is feeding him, which is the normal way to do it (I've worked with protocols of Ultima Online, KalOnline and a little bit of World of Warcraft), then this momentaneous 5 secounds delay would just make him receive this 5 secounds of events all at once and see those events passing really fast or near instantly, as other players would see him "walking" really fast for a short distance if his outputs delay too. After that everything flows normally again. Actually, except for graphic and physics normalization, I can't see any special needs to make it synchronize properly, it just synchronize itself.
If you ever played Valve games in two near computers you would notice they don't care much about minor details like "the exact place where you died" or "where you dead body gibs flyed to". It is all up to client side and totally affected by latency, but this is irrelevant.
After all, lagged players must accept their condition, or close their damn eMule.