Ok, so I managed to bring the lag down to a managable level. Here's how I did it:

1-In the games's options menue, turn OFF the dolby 5.1 setting (main improvement is this)
2-On the AVR, run it in pure direct mode (helps a little, but it might be my imagination)

Now I can play those free parts in the middle of a song and get back in the song on the right tempo!


My new system: M80s, VP-150, EP-350 and QS8s, Denon AVR-889, Samsung BD-P1500 and XBox360