There has been a lot of news in online emulation gaming for the past months.
2 new alternatives to Kaillera have been created so far, much less laggy than Kaillera (hard to trust, but it's true

They seem to be basically the same lag-wise (GGPO is said to be better along long distances), GGPO just has a bigger community / more active forum (it's older than 2DF), and 2DF has more games supported and more frequent updates. Both are based on nFBA.
Compatibility lists :
GGPO (copy-pasted from the site but I believe this list is not up to date...) :
2DF Freeplay :* Street Fighter Alpha 2 (US 960306)
* Marvel Vs. Capcom: Clash of Super Heroes (Euro 980112)
* Vampire Savior: The Lord of Vampire (Euro 970519)
* Dungeons & Dragons: Shadow over Mystara (Euro 960619)
Super Street Fighter II Turbo
The King of Fighters '98 - the slugfest
The King of Fighters 2002 - challenge to ultimate battle
The Last Blade 2
Street Fighter Alpha 2
Street Fighter Alpha 3
Vampire Savior - the lord of vampire
Vampire Savior 2 - the lord of vampire
X-Men vs Street Fighter
World Heroes Perfect
Waku Waku 7
Super Puzzle Fighter II Turbo
Samurai Shodown V Special
Real Bout Fatal Fury Special
Night Warriors - darkstalkers' revenge
Marvel vs Capcom - clash of super heroes
Garou - mark of the wolves
Real Bout Fatal Fury 2 - the newcomers
Karnov's Revenge
Samurai Shodown IV - Amakusa's revenge
The King of Fighters 2000
Street Fighter II' - hyper fighting
X-Men - children of the atom
Street Fighter II' - champion edition
Ninja Master's haoh ninpo cho
Fatal Fury Special
Breakers Revenge
Twinkle Star Sprites
Marvel Super Heroes
Street Fighter 3: Third Strike
JoJo's Bizarre Adventure
Would you like to give a try with one of those new emulators ? I'm using 2DF but I could give a try at GGPO.
(my time is GMT +1)
@Skyline : you might be interested in knowing there are some Twinkle Star Sprites playing on 2DF ! (me included).