My ISP ruled out that it's them. So my question is can a bad or failing hard drive in my xbox cause me to experience pauses while playing online as games are installed to the hard drive. Eventually I'll get disconnected from the server but remain connected to xbox live. I can immediately due a speed test and get 20 ping 18mb down and 1.5mb up. When I say lag I mean like in Battlefield 3 everything will freeze and then start moving again all of this is done online.