The daily PW hour is most definately a server-side issue. During that hour even mobs are frozen during PWs (I have successfully killed Dante during these PWs, if it was on player-end we would have been wiped as guards would still have been active during the PWs). Last I heard during that hour there is some sort of server process, file backup, etc. that causes the lag. I am used to it now and it is better than the top-of-the-hour PWs that have existed in the past, but for the sake of appearing to be a well run game it should be reduced further.