Can anything be done to fix the lag in Terraria Multiplayer?

How are you running the server?

I've run a server on a computer and port-forwarded the ports and had very bad lag issues with friends directly connecting. However, when I run it and my friends connect through Hamachi, it seems to alleviate most of the lag. If you're not running through Hamachi, you should give it a try.

This seems counter-intuitive to me since you would think Hamachi would ADD overhead, not take it away but what can I say, that's what I've noticed.