Update: April Fools
"It turns out the servers that Amazon provided us with weren't meant to take the strain of a virtual world as active as Second Life is," the statement by the Lab explained, "Not only are we not getting the performance improvements we were hoping for, the lag and other issues such as teleport fails and inventory issues have been slowly getting worse over the past few months."
The statement went on to say that the servers are starting to deteriorate faster, and so the issues will start to get even worse, and fast. It's estimated that within two weeks, viewers will need four to five times to load information around an avatar after TPing or logging on. Crashes an teleport fails will be several more times likely to happen as well, and items will start vanishing from inventories. Within three weeks, viewers will take ten times as long to process information after logging on or teleporting. That is if people can log on or teleport at all as fails will start to keep people from doing so for five to ten minutes. And within a month, Second Life will become unusable to those without newer and more powerful computers.
Linden Lab is working with Amazon to get better servers and transfer the data to them, but this will take time. For now, the Lab is offering a downloadable code that will allow the servers to better recognize users and their data and not suffer quite as much lag.
For more information and to download the code: Click Here.