Sorry one more question could the packet loss be responsible for the latency? Like i said earlier most of the time the latency is low but it spikes for aprox 2 second about every minute and it seems that the hop time is pretty constant. I dont know much about this stuff so im sorry if im just being annoying. This has been quite frustrating :P
To answer that question, maybe, However I have had 73 % + packet loss on a router with nil issues when i have run pathpings myself, input lag can be as simply from vsynch as it does introduce input lag on some machines.
If your pings on hop 1 are fluctuating from low to high then i would think this is likely more a contributing factor, ping that high indicates congestion from word go.