I don't think lag would be that big if we do it right. You can play lan games over the net, and you know like me that lan is kind of like direct play but with a much higher limit of data than with a 28.8 kbps modem and more players. The main lag problem would come from the distance. I would try to tunnel uncompressed data, so anyone with a good internet connection should be able to play. I know the netlink doesn't do well with lag, but sure it will be alright as long as you have a good ISP. You can go on
www.saturnleague.com for more informations about this. Another member there is working on a line simulator that will allow you to play lan-like NetLink games, and I'll use this device to make the Saturn connect on computer and receive calls from the computer (since the NetLink needs a dial-tone and a ring-tone, which cannot be made only by the modem).
Back on topic, I've done some researches, and it seems that older versions of UT servers are compatible with the unreleased version 404 server, so that shouldn't be a problem. Now I need to know how to make the servers show up to be able to test, but sadly I won't be home for 3 more weeks so I can't do much right now, plus having 2 major projects at the same time and not much free time isn't the best thing, so any help is welcomed.