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ok, so i am not an expert with Lag switches, but i did come to find out that many people have had the same problem as me, including:
-3 seconds lag (long)
-disconnecting right after u switch
-green or orange??
what i figured out on my set-up i use green wire and get both kinds of lag... how u ask?
GET BOTH KINDS OF LAG
ill tell ya,
LONG LAG
-for long lag use switch between modem--- router---(s)---ps3
*i use green wire
*i couldnt get orange to stop disconnecting
FREEZE LAG
-for freeze lag place switch between modem---(s)---router--ps3
*also use green wire
*i get freeze lag with orange too
DISCONNECT PROBLEM
* 1 thing I i did was kept flipping the switch while testing internet connection, then after a bit I was able to do it without disconnect.
*if you keep disconnecting reset modem and keep trying.
I CURRENTLY GET ABOUT 25 secs OF LONG LAG and ABOUT 8 secs of FREEZE LAG

on MGO
AND FOR THOSE OF YOU HAVE ROUTER/MODEM... Sorry I can't help ya 8(
Happy Glitching!