Seems widespread. I was playing games with two mates in the staes yesterday (im in Aust) and though i could connect to them fine and they to me, they could not connect to each other with anything under 705ping, and they are both Central USA and normally get about 70 ping.
Took us about 15 mins of rehosting and recconecting to get a playable ping, but then we suffered de-synchs the whole time till the game finally dropped.
I'd say there is some server issuses as they are setting up room for the demo.
Hopefully sorted out soon.