If you have that kind of stuttering what you see in the video above, here is a solution:

I have ESET Smart Security 7 and even disabling firewall and antivirus, there were still components running like HIPS (Host-based Intrusion Prevention System) which was scanning memory.

When I disable ADVANCED MEMORY SCANNER under HIPS, problem goes away.
ESET -> SETUP -> ENTER ADVANCED SETUP -> COMPUTER -> HIPS -> DISABLE ADVANCED MEMORY SCANNER

Nope, I have tested many times connections. UDP and TCP has 0 packetloss and jitter is 0.4ms. Ping to server is <60ms and to other server <20ms.

It is something else..

Confirmed also on Arma2. When I disable Battleye from A2 server, have no stuttering. BE enabled, same kind of stuttering what you can see on Arma3 video above.

There seems to be related ticket already for this:
http://feedback.arma3.com/view.php?id=15182

Finally found what is causing this!
When server has battleye disabled, this stuttering/warping wont happen anymore.
Just dont understand why this didnt happened with old rig?
Could it be because SSD is so much faster than previous one?
BE asks to scan files and it chokes when SSD reads too fast.. sounds crazy.. dunno.

I updated my computer, with old setup there was not any stuttering in multiplayer servers and FPS was 50-80.
With new setup there is small freeze like every 500ms, totally _UNPLAYABLE_.

Old setup:
Win764bit, Intel DP67BG MB with Intel NIC, Intel 3770K, 16GB 1600MHz, Crucial C300 256GB SSD, EVGA GTX 580 3GB, Corsair A850 PWR

New setup:
Win764bit, Asrock Extreme 9/ac with Intel NIC, Intel 4770K, 16GB 2400MHz, Samsung 840 500GB SSD, INNO3D GTX 780 3GB Hybrid Accelero, Corsair A850 PWR

When I create internet or lan game, there is no stutter what so ever. If I join any server which is not hosted by same computer, there is this stutter issue.
Same thing happens on Arma2 too.
Tried other games like CS GO without any issues on any server.

This is definitely Arma3 and Arma2 issue and is closely related with networking.

Windows 7 64bit is fully updated (fresh install)
Intel nic 18.5 drivers updated
Nvidia latest 331.58 drivers updated
Asrock bios 1.80 updated

Tried also with old GTX 580 display adapter, still stuttering.
Tried to change network cards (MB has 2 intel nic), still stuttering.
Tried to change network speed and offload etc settings, still stuttering.
Tried to kill all extra processes from windows, still stuttering.
Tried to disable windows aero, still stuttering.
Tried to fresh A3 install into different HDD (WD Caviar), still stuttering.
Tried to put process priority to realtime/high, still stuttering.
Tried to change nvidia PowerManMode=Perf, still stuttering.
Tried to change to nvidia experience optimized settings, still stuttering.
Tried to BIOS disable integrated nic/wlan/infra/bt/serial, still stuttering.
Tried to underclock cpu, still stuttering.
Tried to start with -nosound parameter, still stuttering.
Tried to disable soundcard from BIOS and -nosound param, still stuttering.
Tried to unpark all cpu's, still stuttering.
Tried to change GPU PCIe slot, still stuttering.
Tried to disable intel SpeedStep, TurboBoost and HyperThreading, still stuttering.
Tried to disable CPU Thermal Throttling (even temp is 30C), still stuttering
Tried to update dev 1.05.111433 branch, still stuttering.

Any other game works just great, Arma2 or Arma3 is stuttering WHEN PLAYING IN DEDICATED SERVERS. Local server works great.
As a notice, same dedicated servers did work with old setup perfectly few hours earlier.

Network is performing good. Low latency, no jitter or pl and speeds around 80-90Mbit/s. Ingame there is no desync and ping looks ok.
Z-CPU and Z-GPU does not report any issues on HW while stuttering.
Tested SSD speeds read 534MB/s write 502MB/s.
Here is link for current setup performance test (3dmark)
http://www.3dmark.com/3dm/1440574

Tested on several missions and two different server HW setups/locations:
Server 1: Intel 4770, 32GB RAM, Intel 240GB SSD, 1Gbit internet (<60ms ping)
Server 2: Intel 3770K @ 4.7GHz, 16GB RAM, Crucial 256GB SSD, 100Mbit internet (<20ms ping)
+ few random servers from ingamebrowser

Uploaded video about issue:
http://www.youtube.com/watch?v=Dd9NEYOVqwM

Stable and dev 1.05.111433 versions.

Im running soon out of ideas with this :o

While running, the sound of steps is not "stable", it sounds more like you are jumping.
Also it looks like you warp forward like every 0.5sec.
Things seems to happen like in "bursts".

Were driving with Hunter and slammed head-on collision with quadbike.
Again, game freezes just after collision with car engine sound looping.

Last lines from rpt:
Unknown entry type a in /value/Item19/data/value/
Unknown entry type 21 in /value/Item19/data/value/

Were driving with ifrit and took some rifle fire -> CTD.
Could it be something wrong with ifrit?
Dumps: http://feedback.arma3.com/file_download.php?file_id=6263&type=bug

Were driving with ifrit at 232,194 to SE and did hit break two times in row -> CTD
Dumps: http://feedback.arma3.com/file_download.php?file_id=6258&type=bug

Sable, you were absolutely right.
I have ESET Smart Security 7 and even disabling firewall and antivirus, there were still components running like HIPS (Host-based Intrusion Prevention System) which was scanning memory.

When I disable ADVANCED MEMORY SCANNER under HIPS, problem goes away.
ESET -> SETUP -> ENTER ADVANCED SETUP -> COMPUTER -> HIPS -> DISABLE ADVANCED MEMORY SCANNER

I think you can close this issue as resolved.

Fresh Win7 64bit install here with updates.
Been fighting with this issue few days, no clue how to fix it.
Have it on Arma2 and Arma3, if I disable BE from servers, issue goes away.
Reloading beclient.dll wont help either.

Still crashing, opened new ticked as requested:
http://feedback.arma3.com/view.php?id=15183

Version 1.03.110653
Fault time: 2013/10/02 21:01:07
Fault address: 0F2E21CB 01:001511CB C:\Program Files (x86)\Steam\steamapps\common\Arma 3\PhysX3_x86.dll
file: A3_Wasteland (__CUR_MP)
world: Altis
Prev. code bytes: 85 C0 74 1D 8B 50 40 F6 42 4C 01 75 14 8B 40 60
Fault code bytes: F6 40 2C 01 75 0B 51 50 57 E8 97 FF FF FF 83 C4

Registers:
EAX:00000000 EBX:508A29E0
ECX:57B2AC80 EDX:863794A0
ESI:4F794E04 EDI:5AA4F680
CS:EIP:0023:0F2E21CB
SS:ESP:002B:01DEBAA4 EBP:01DEBAB8
DS:002B ES:002B FS:0053 GS:002B

Flags:00010246

note: Minidump has been generated into the file http://feedback.arma3.com/file_download.php?file_id=6244&type=bug

Dev's have found the issue, they are just confirming that fix is working properly :)

You were just lucky, there is dump for 110511 crashing.
It looks like happen more often when server with "war" mission has more than ~ 30 players.
Also in "life" missions it wont happen so often, so maybe something with explosions or airunits? (just a wild guess).

Updated hotfix (stable) 30.09.2013 21:00, still crashing on physx3.
Dump uploaded: arma3_2013-09-30_22-03-29.zip

Just as notice 110511 dev build (30.09.2013) still crashing.

Yes well this physx issue was there two weeks ago when we tested dev build.
No idea why they still decided to release it.

arma3 is not using physx2 which comes with nvidia display drivers, so it has no effect what you set in nvidia control panel for physx.

Happens also with battleye disabled.

@chubbers, I believe "steam ticket error" is a _result_ of client CTD because physx3, not a issue itself. Server doesn't know why client DC and maybe steam backend just timeouts and reports to server.

Dev 1.03.110466 version crashes too.

Now it was under 5 minutes gameplay for today and CTD with PhysX3 error.
Ill keep uploading these dumps, hopefully you will find something.

Our server goes from 70 players down to 20 in a second as people CTD.
Happens to me also while flying chopper, nobody else near me and suddenly in midair CTD physx3 error. Been trying to change almost every single settings in game without help.
Happens while driving with ATV or walking on grass, seems to be totally random.

Its aroud 10-15 minutes gameplay and then CTD. Totally broken. Uploaded 5 dumps.

Nope, I have tested many times connections. UDP and TCP has 0 packetloss and jitter is 0.4ms. Ping to server is <60ms and to other server <20ms.

It is something else..

Confirmed also on Arma2. When I disable Battleye from A2 server, have no stuttering. BE enabled, same kind of stuttering what you can see on Arma3 video above.

There seems to be related ticket already for this:
http://feedback.arma3.com/view.php?id=15182

If you have that kind of stuttering what you see in the video above, here is a solution:

I have ESET Smart Security 7 and even disabling firewall and antivirus, there were still components running like HIPS (Host-based Intrusion Prevention System) which was scanning memory.

When I disable ADVANCED MEMORY SCANNER under HIPS, problem goes away.
ESET -> SETUP -> ENTER ADVANCED SETUP -> COMPUTER -> HIPS -> DISABLE ADVANCED MEMORY SCANNER

Finally found what is causing this!
When server has battleye disabled, this stuttering/warping wont happen anymore.
Just dont understand why this didnt happened with old rig?
Could it be because SSD is so much faster than previous one?
BE asks to scan files and it chokes when SSD reads too fast.. sounds crazy.. dunno.

I updated my computer, with old setup there was not any stuttering in multiplayer servers and FPS was 50-80.
With new setup there is small freeze like every 500ms, totally _UNPLAYABLE_.

Old setup:
Win764bit, Intel DP67BG MB with Intel NIC, Intel 3770K, 16GB 1600MHz, Crucial C300 256GB SSD, EVGA GTX 580 3GB, Corsair A850 PWR

New setup:
Win764bit, Asrock Extreme 9/ac with Intel NIC, Intel 4770K, 16GB 2400MHz, Samsung 840 500GB SSD, INNO3D GTX 780 3GB Hybrid Accelero, Corsair A850 PWR

When I create internet or lan game, there is no stutter what so ever. If I join any server which is not hosted by same computer, there is this stutter issue.
Same thing happens on Arma2 too.
Tried other games like CS GO without any issues on any server.

This is definitely Arma3 and Arma2 issue and is closely related with networking.

Windows 7 64bit is fully updated (fresh install)
Intel nic 18.5 drivers updated
Nvidia latest 331.58 drivers updated
Asrock bios 1.80 updated

Tried also with old GTX 580 display adapter, still stuttering.
Tried to change network cards (MB has 2 intel nic), still stuttering.
Tried to change network speed and offload etc settings, still stuttering.
Tried to kill all extra processes from windows, still stuttering.
Tried to disable windows aero, still stuttering.
Tried to fresh A3 install into different HDD (WD Caviar), still stuttering.
Tried to put process priority to realtime/high, still stuttering.
Tried to change nvidia PowerManMode=Perf, still stuttering.
Tried to change to nvidia experience optimized settings, still stuttering.
Tried to BIOS disable integrated nic/wlan/infra/bt/serial, still stuttering.
Tried to underclock cpu, still stuttering.
Tried to start with -nosound parameter, still stuttering.
Tried to disable soundcard from BIOS and -nosound param, still stuttering.
Tried to unpark all cpu's, still stuttering.
Tried to change GPU PCIe slot, still stuttering.
Tried to disable intel SpeedStep, TurboBoost and HyperThreading, still stuttering.
Tried to disable CPU Thermal Throttling (even temp is 30C), still stuttering
Tried to update dev 1.05.111433 branch, still stuttering.

Any other game works just great, Arma2 or Arma3 is stuttering WHEN PLAYING IN DEDICATED SERVERS. Local server works great.
As a notice, same dedicated servers did work with old setup perfectly few hours earlier.

Network is performing good. Low latency, no jitter or pl and speeds around 80-90Mbit/s. Ingame there is no desync and ping looks ok.
Z-CPU and Z-GPU does not report any issues on HW while stuttering.
Tested SSD speeds read 534MB/s write 502MB/s.
Here is link for current setup performance test (3dmark)
http://www.3dmark.com/3dm/1440574

Tested on several missions and two different server HW setups/locations:
Server 1: Intel 4770, 32GB RAM, Intel 240GB SSD, 1Gbit internet (<60ms ping)
Server 2: Intel 3770K @ 4.7GHz, 16GB RAM, Crucial 256GB SSD, 100Mbit internet (<20ms ping)
+ few random servers from ingamebrowser

Uploaded video about issue:
http://www.youtube.com/watch?v=Dd9NEYOVqwM

Stable and dev 1.05.111433 versions.

Im running soon out of ideas with this :o

While running, the sound of steps is not "stable", it sounds more like you are jumping.
Also it looks like you warp forward like every 0.5sec.
Things seems to happen like in "bursts".

[POSSIBLE SOLUTION]

If you have _extreme_ stutter/warp/freeze issues, this could solve your problem.
Especially if your singleplayer works fine but you have issues on MP.

http://www.youtube.com/watch?v=Dd9NEYOVqwM