Direct connect works as normal. Someone hosts, then other ppl type connect the.ir.ip.address:27015 to join, simple as that.

Daz, that lag thing, I just played a bit with nano and von - first game with nano, I had 125 ping but the lag was terrible, felt more like 500+, unplayable really. Then Von joined and the map changed, and suddenly it was okay again. Then nano left and we changed back to the other map, and it was still okay. Don't know what's going on there but the first lag sounds like what you had, and it cleared up on changing map.