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I am unclear what impact the fupdate setting has on the algorithm just described by Khaled.

The /fupdate setting is the maximum display update delay. So if you specify 100, it will display less frequently than 10. That said, with the latest algorithm, even if you specify 100, it may not reach that since it is adjusting automatically to the maximum value that makes a significant difference.

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Additionally, without some sort of server driven flood test running mIRC on a low powered CPU, I have no idea whether this would stop mIRC locking up in such situations.

This is the main issue with the new method. For example, 10 lines per second may cause UI lag on a slow computer, so the value should be lower for slow computers so that /fupdate kicks in earlier. But the only way to know this is to benchmark the computer.