You guys should all post your connection speeds so that the thread is more informative.
The character freezing issue is, I'm guessing, an anti cheat measure designed so that the player cannot take advantage of a lagged connection, but it's obviously extremely strict/touchy this time around.
My connection is a 4mb down and 1 mb up according to my phones speed test app, and my ps3 is wired directly to my modem.
Also, I should note that as of today I have not experienced any freezing whatsoever, when it was extremely bad over the weekend(when I was the only one using my connection). What hell. But I still feel for you guys.