I'll give it a try:
Unlagged records everyone's location into a "circular" array once every server frame.
When someone fires an unlagged weapon, it shifts everyone back to about where they were when the attacker shot, examines the shot for hit/miss, and then puts everything back where it was
NOTE:
Part of this I am just guessing at, but I have done some looking through it.
The biggest problem is that it does NOT give the target time to react, as they end up appearing to have died in the past. While it could result in deaths being administered maybe upto a second late, a possible solution would be for it to wait the target's ping before actually inflicting the damage.
Heh.
Mostly copied from a different forum.