So far, either by luck or for other reasons, I've not played anyone in my state. I have played people from Mexico, Washington, New York, Columbia, Japan, Mississippi, Canada, and everywhere in between. Most of the states surrounding me have been 3 bar connections. There have been slight slow downs here and there, but nothing really major.
For 3 bar connections, I've had an easier time timing combos. I'd say there's maybe a 3-4F delay there. 1 bar and 2 bar connections have a little under 10F. Being modest, I'd say atleast 7F of delay in a 1 bar connection. For a more real-world representation, if I play a 3 bar connection, you can hear the clack of the button you pressed as you see the animation of the move beginning. In a 1 bar connection, the sound is echoing through the machine, but has passed by the time an animation comes out. It's fairly noticeable. So far, I have not had problems with movement, but there have been some connections that have made it difficult to block high speed manuevers like cross up setups. But it's good enough that if you make an adjustment to the speed, you can play a normally.